Bloomberg Livestream - 2022-08-23 00:00:00

Of athletes fighting to have agency and power in the terms of their work And who they do it for. Martial arts used to be pretty culturally and legally fringe in the United States GPE . It was banned by most states John McCain PERSON had famously called it human cock fighting. There are some rules in the UFC ORG but to a large extent Words of body parts and tactics and attacks are on the table and people get Be injured at times. My nose has been broken multiple times. Actual torn off how to get that reattached. The two CARDINAL places about my neck broken. The ankle broken had to get that repaired. He broke my eyeball. I mean the bone that holds up my ball. I've had my left eye orbital fracture twice where my eye caved in. But I knew don't blow your nose or both eyes as well. At the time that UFC ORG was bought for just two 1 million dollars QUANTITY By the former boxing coach, Dana White PERSON , and a casino owner. He'd been friends with Lorenzo Fertita PERSON and his brother Frank Fertita PERSON . Was struggling as where other mixed martial arts promoters. It was pretty much a fixer upper. The money that they spent to actually purchase it for two 1 million dollars MONEY was much less than the money they quickly had to sink into it in order to revitalize it. They pulled off a multi-pronged strategy that was quite successful. First ORDINAL they did what white has referred to as running towards regulation. They found ways to make compromises with state regulators So that the sport would not be illegal. And at the same time they also popularized it they made gambles like paying the production costs themselves for the first season DATE of a reality TV show the ultimate fighter on Spike TV For weaving compelling personal narratives and rivalry people throwing shoes I coming to the octagon with who let the dogs out playing while he was dragging another guy on a leash. My first ORDINAL contract with the UFC ORG is kind of an interesting story because here I am on this reality show the ultimate fighter and they started to realize how big of a stepping stone this was going to be for the UFC ORG status all down individually put a contract in front of us and said Hey we realize that this is gonna be huge and we really wanna have you all a part of this UFC PERSON family moving forward so we wanna go ahead and get this out of the way just sign this simple contract and we'll be able to move forward as one CARDINAL unit What is I'm looking at this thick contract and wondering what I should do Dana White PERSON looks at me and says Don't worry this thing takes off we'll take care of you The fighters would say at the heart of UFC ORG 's power is the contracts that it signs with fighters. Before boxing had competition boxing used to be dominated by a few dominant promoters and the contracts were ported over from boxing and the contracts are basically designed to control every aspect of a fighter's career. There are long term. They last multiple fights. Fighters under these contracts Are bound to fight only for UFC ORG for a period of time. And UFC ORG can extend that time if a fighter declines a match or if a fighter gets injured Take control who the fighter fights they control when the fighter fights and then they have a number of different classes that make it very difficult for a fighter to ever break free from the UFC ORG if that fighter ever did want to become a free agent So one CARDINAL sided there really is no negotiation room for any of the things especially as your

See if that fighter ever did want to become a creation. Are so one CARDINAL sided there really is no negotiation room for any of the things especially as you're coming up and as they're strangle hold on the sporter MMA got so much stronger Part of what's at the heart of this lawsuit is the ways that UFC ORG Competitors The UFC ORG has such a strangle hold on mixed martial arts and as they were buying up so much of the competition shutting them all down. They really became the the only option for anybody that wanted to do this professionally. If you follow Dana White's PERSON Twitter PRODUCT or watch him on YouTube ORG you could have seen Dana White PERSON calling himself the grim reaper in bragging about how he has Defeated PERSON or derailed or acquired There another That tried to compete with the UFC ORG . In 2011 DATE UFC ORG acquired strike force which at the time was the most prominent rival still standing. The CEO of Strike Force Scott Coker PRODUCT Said PERSON in the past that he saw himself like Luke Skywalker PERSON up against the death star trying to compete with UFC ORG . When strike force was bought out by UFC ORG The option was go to Contract. Now, I'm under a contract where it's only a 18 month DATE contract with six CARDINAL fights but 5 years later DATE , I'm still stuck in the contract. The month DATE before UFC ORG 's parent company Zufa PERSON It's acquisition of strike force. A UFC ORG executive Send an email and the subject line of that email was we own MMA. In the UFC ORG has admitted in documents that have now become public that they've almost never lost a fighter that they wanted to keep. Internal UFC Emails ORG . We now know The company referred to what it was doing as choking off oxygen to the competition. The most important oxygen that UFC ORG allegedly Ran a foul of the law by cutting off to its competitors is the fighters themselves. Martial arts world there is no negotiating. Very strict never ending contracts and that's the case to this day DATE . You'll see just says oh you wanna fight for us you sign here if you don't want to we've got 20 CARDINAL other guys that'll take your spot 7080, 90% PERCENT of the top fighters under exclusive contract. Meaning that those fighters are not available to any other MMA promoter. In fighters, even if they wiggled their way out of the very restrictive contract that you have seen post on them Did PERSON n't have another Mixed NORP martial arts option There weren't robust rivals to go sell their work to. On Tuesday DATE afternoon TIME a class action lawsuit was filed in US GPE district court in San Jose GPE against Zufa NORP LLC with fighters Attached to the soup. Came to me and says hey come I know this lawyer he will help get the fairness for the fighters on you know in in the marketplace and I decided I wanted to step up for all the fighters that being affected

Help get some fairness for the fighters on you know in in the marketplace and I decided I wanted to step up for all the fighters that being affected at the end of 2014 6 years ago DATE now group of now all former fighters Auntie Trust ORG class action lawsuit against UFC ORG In broad terms the case is an anti trust case where we're claiming that the UFC ORG is both a monopoly and a monoposony. Hey when we talk about monopoly we're talking about the power that a company has when it becomes the only one selling something monoposony is about the power of being a monopoly purchaser of something in particularly a monopoly purchaser of labor A key argument in this lawsuit has been about as UFC ORG succeeds and it's revenue source how much should we expect Absent illegal conduct. The fighters pay would soar as well. In UFC PERSON After year DATE the share of the company's revenue that goes to actually The workers doing the fighting has hovered around or below 20% PERCENT and what does analysis shows through complex statistical regression modeling is that if the UFC ORG Was competitive and did not allegedly violate the any trust laws it would pay its fighters 50% PERCENT or more of the revenues is generated just like baseball just like hockey just like basketball If instead of paying 20% PERCENT of the revenues generated it paid 50% PERCENT or more of the revenues generated The fighters would have made $ one MONEY . 6 billion more during the period that we measured 2010 to 2017. When you write about allegations against companies in particularly about lawsuits against companies those companies Don't wanna say a whole lot about them Are pretty dismissive of the significance of litigation against them UFC ORG in their comments to me Been pretty feisty about this saying that they see this lawsuit actually as a threat to the ability of businesses to take risks in succeed They don't wanna Roll over. That they want to fight it and they want to defeat it. The fighters I talked to describe having side jobs Reliant on UFC PERSON in part because Taxes ORG and expenses they weren't making enough money to feel financially secure. Overview of my career from a financial perspective is you know something I've had a challenge in admitting I could tell you now that I lived in my mom's Natash garage the entire time I was fighting in her head Second ORDINAL job is about turn a bartender a third ORDINAL job as a personal trainer just to make ends meet. Nate Quari PERSON told me that over his time in UFC ORG he fought fights while he was tens of thousands of dollars MONEY in debt coming into the fight it gets so disheartening because I've seen fights that are called the fight of the year this is just a Brutal war. Battle for four and a half DATE rounds until one CARDINAL guy's body just gave up and then you find out oh that guy made $60 thousand for that fight In one of the hearings in this lawsuit Attorney argued that if the fighters were really the product if all that UFC ORG were selling were the fighters then the fighters wouldn't need you to see it all that Fighter is not The UFC ORG product any more than An Apple ORG engineer who makes a cool iPhone ORG is the product that Apple ORG is selling. We the fighters make this whole thing happen and it's been driven by Chuck Ladell PERSON . It's been driven by writing guitars, been driven by Conor McGregor's PERSON , been driven by Brock Lesnar ORG , has been driven by all the greats that have walked before us and that walked this path right now. We are the product. If the fighters are not the product,

This path right now. We are the product. If the fighters are not the product, then go ahead and release us from our contracts. You'll do fine without us. Clearly, it's the identity and rank and popularity of those fighters that attract the eyeballs and make the sport what it is. And if you can lock all those up and keep them from other promotions, you can dominate Which is what they've admitted they've done. William Isaacson PERSON a lawyer for UFC ORG set in a statement that UFC ORG has spent many years building a world class organization in hansing the brand of our athletes and championing the sport of MMA. See patients fighters more than any other MMA promoter with average fighter compensation rising by over 600% PERCENT since 2005 DATE . Our efforts have raised the global popularity of the sport and the overall revenue potential of all MMA organizations and athletes. In Of 20 CARDINAL the judge announced a crucial step in this lawsuit which is that he is going to certify it as a class action. Class certification This lawsuit a much more significant threat to UFC ORG and the judge made clear long before saying how he planned to rule that he expected whatever he did to be appealed into federal appeals court and on from there to the US Supreme Court ORG so we are likely in for many more In years DATE . Wrangling over this. Kyle Pingsbury PERSON said that he doesn't think any settlement would be acceptable unless it includes a change to the restrictive contracts that UFC ORG uses to keep fighters bound to the UFC My son's about to turn 6 years old DATE and it started when he was in the womb. You know, we're we're in this thing to the end. To change the sport forever we want the same freedoms that are offered in any other major sport we're every other major sport has gone through what we're going through right now People tell fighters. Yo ORG , just shut up. How lucky you are. Well, no, actually, we're fighting for what we believe in We're gonna continue being fighters. That's how we, how we're made. Every nation that's a coastal state has some region of the sea floor that falls within their territorial waters and many countries including the US GPE the area that's underwater exceeds the area Above water. So, huge amounts of nations, areas, and regions are just really unexplored, uncharterized. We know really know what's there. We know less about our sea bed than we do about the surface of the moon or mars. Only 20% PERCENT of it has been mapped. A map of the sea floor could lead to all kinds of discoveries like new marine species and rare earth minerals like cobalt that we need for electric cars and mobile phones. The value of all the gold deposits alone on the sea floor is estimated to be around 150 1 trillion dollars MONEY . I'm up could also help us when tragedy strikes Like 370 CARDINAL disappeared from radar.

150 1 trillion dollars MONEY . I'm up could also help us when tragedy strikes 370 CARDINAL disappeared from radar screens the mapping of the ocean floor is being carried out problem is that the southern Indian Ocean LOC is just so incredibly huge to me Fundamental piece of understanding of who we are, where we are, where things are, once you understand something, you start to value it more Preserving PERSON it and keeping it going. A map is the first ORDINAL step. It's the basic understanding that you need to figure out where you are. Oceans. They cover over 70% PERCENT of the planet but most of what lies underneath is a mystery. The sea floor is a really fascinating landscape. We don't have a lot of data to describe the shape of it in detail. But in places where we do there are spectacular features. There's meandering channels with all kinds of interesting photography. There are canyons. There are sea mounts. Mid Ridges ORG all kinds of things that we see on land that are just basically hidden from us by the water. As it stands this is what a map of the sea bed looks like or that black those are the parts we haven't mapped yet. And most people think that the sea floor is actually mapped because you'll see a world ocean nap and you can see some shape of the sea floor but most of that is based on prediction roughly 80% PERCENT of what you see for the world ocean floor is modeled based on measurements of the sea surface height and a computation Based on gravity. In 2017 DATE the nip on foundation ORG and the general bathroom metric chart PERSON of the oceans or jebco launched sea bed 2030 DATE It's a collaborative project to collect and collect data ocean wide and create a complete map of the sea floor by the end of the decade DATE To do this would take one ship around 350 years DATE at a cost of up to three 1 billion dollars QUANTITY that's why data is harvested by all kinds of vessels From fishing boats to freighters. Because there is so little data It's important that Vessels ORG that are capable and willing to acquire data while when they're just moving around the ocean do so. So, we have a lot of data that's collected during transits. There's a lot of academic requirements to make data publicly available. There's industry data that's starting to become more and more available. There's government data. So, there's a lot of different ways that this data is coming in and it's a really messy And challenging puzzle to put together but what's exciting is that it's a puzzle to put together Since see by 2030 CARDINAL launch the area mapped has risen to 20% PERCENT and all the information collected is freely available. The more data we have collectively and other people can access the the faster the discoveries are made which really pushes forward are understanding it a faster rate than if you held on to that data and it was only you with that data. Things like machine learning and artificial intelligence are also going to kick in in the next decade DATE . Because with all this data they'll be able to make connections that a lot faster than perhaps we would have been able to which then again feeds our human understanding and also gives us new ideas new ways of thinking of expiration Until the early 20th century DATE mapping technology was simple Wait attach to a long rope known as a deadline. After the Titanic ORG sunk in 1912 DATE explorers proposed using sound waves to find its hole in the north Atlantic LOC this led to Sona PERSON the most common technique used for mapping today Operated by the schmidt ocean institute the falco is an 82 CARDINAL m long research vessel equipped with two CARDINAL multi beam so nar systems that have Deborah Smith PERSON and a team of other marine technicians to mark over a one 1 million square kilometers QUANTITY of the sea floor From somebody with AA rope with some knots to Our acoustics that is I call it math magic but it is incredibly advanced.

From somebody with a rope with some knots to Acoustics GPE that is I call it math magic but it is incredibly advanced mathematical technology to be able to measure the distance in time of travel of sound on a moving ship. Multibe mapping works by using Sonars so Sonar LAW is taking sound and the measurement of time so you have a multibean sonar and it sends out a ping of sound that sound travels to the water column hits to see floor and comes back to the ship and we measure that And we're able to calculate the distance. Each individual king of sound has many many beams. So, it looks like a giant fan across the sea floor and that fan is moving along the sea floor. So, you have many tiny little beams going across and they're travelling along a track. You can look at that data and look at both the peaks and the vall Three CARDINAL dimensional image of the sea floor. The accuracy of multime sonar really depends on the water depth that you're in. Think of it like a flashlight beam and if you're holding a flashlight and you're shining it on the floor, the closer you get to the floor with your flashlight, the smaller that beam is. If you have 400 CARDINAL of these beams all across, I think of 400 CARDINAL people holding a Which also means the smaller that you can find information or data about. So, it really depends on the depth of the sea floor in order to see how much you can define an object. This variation in depth means that mapping resolution will range from 100 CARDINAL by 100 CARDINAL m in shallow waters to 800 CARDINAL by 800 CARDINAL m in the deepest parts of the ocean which go down as far as 11 1000 CARDINAL m. Remotely operated vehicles or ROVs can then be sent down to investigate sea bed features up close The 1000 m mark it's four CARDINAL . Six CARDINAL Sea LOC floor on a recent marketing expedition scientists on the falcon ORG discovered a 500 CARDINAL m tall coral structure in Australia GPE 's Great Barrier Reef ORG the first ORDINAL to be discovered in over 100 Yes. Popular, well visited, well traveled, you know, we're still finding new things. You don't know until you map it and so until you get that sort of high resolution picture, you don't know the sand waves or the old riverbeds that used to be there or the waterfalls off the side of a volcano that used to Above the surface and now is below the surface. It's a little bit of everything. Think of let's say Hawaii GPE or some place where you see a volcano above the water. Picture that below the water. I'm really kind of obsessed with the whole concept of scale here. Although we can create threeD models and you know, kinda GPE come up with these visualizations. It's not the same as that feeling of looking Over this big landscape but I mean I think we'll get there soon VR and other kinds of technology but it's really Spectacular to think about especially with the familiarity that some of us have with these features like what it looks like. We look out at the ocean and it just looks flat. Maybe with little bumps. We really don't think about all of this that's underneath and it's really an amazing landscape that's just hidden from us. With more than 90% PERCENT of the ocean deeper than 200 CARDINAL m fleets of autonomous vehicles could make the data gathering process faster cheaper and safer A new discoveries might help with exploration of all kinds. I also think in this next Access PRODUCT to the ocean because of virtual reality and augmented reality and to that will allow us to sit in our living rooms and really experience what's underwater in a different way and see it this different alien planet

Since the dawn of man meet has been on the menu. Hey And even with growing trends of vegetarian diets and plant based substitutes around 89% PERCENT of the world population consider themselves omnivores. We have come a long way from our hunter and gatherer roots. We have managed to establish a whole Designed to feed almost seven CARDINAL . 7 billion CARDINAL people with maximized production and we managed to reduce hunger over the past couple of decades DATE . And although we've become exceedingly efficient at putting meat on the table raising livestock animals by the billions comes with its own set of consequences. If animal agriculture News to expand the way it has. There is a race that we won't be able to stop climate change. But with rapid advances in technology we might soon see a food industry that leaves all those problems behind. I'm about to be one of the world's first ORDINAL commercial customers for lab grown meat cultured meat to eat just as the company and I'm very very excited. Here is the chicken It's pretty crispy outside. It's really good. I mean, look, it's really tasty. Here at 1880 DATE in Singapore GPE culture chicken is being served under a regulatory approval granted by the Singaporean NORP government It's the very first ORDINAL time a cultured meat product meet made from animal cells grown in a lab has been approved for commercial sale. Eat just the company behind these chicken nugget style dishes is based out of San Francisco GPE and got their start in 2011 DATE developing plant based egg substitutes like mung bean scrambled eggs and mayonnaise But it wasn't until 2017 DATE that they announced they were shifting focus to a cultured meat product In order to feed the world that we live in a large animal protein we need to take a third today DATE and it'll be more tomorrow DATE of our world and make it dedicated to feeding chickens and cows Areas that are filled with biodiverse rainforest taking a bulldozer to them and planning soying corn feed the chickens that we climate change is accelerated by the kind of animal production that we engage in when we bring animals in tiny little spaces Why do we need to cause any harm to any other living thing to have dinner that taste good Does not have to be that way and those things underly the force of The meat alternatives that have made it to the market thus far have been plant based imitation beef and pork made from ingredients like pea protein and coconut oil by companies like Beyond Meat and Impossible Food ORG That's a very different proposition from cultured meat which is made from actual animal cells. I'm a huge fan of any company of any person trying to make a product that's improving the food system including all the plant-based proteins

And my cells. I'm a huge fan of any company of any person trying to make a product that's improving the food system including all the plant-based proteins maybe in some future menu you'll have this kind of cultivated chicken and you'll also have a plant-based version that's fine but I guess you have to ask yourself in our lifetime is that diner likely to also Move the conventional option on the menu too. Permanent solution. Will an end game to this problem and we just think this is more likely to be that the path that you bet So animals cell technology has been around for several decades DATE Applications such as development of vaccines and other biotheriltics The first ORDINAL known prototype of cultured meats was done by mark posts earlier in 2011 DATE and essentially it was developing a beef patty PERSON it was a very expensive prototype if I'm not mistaken or above €250000 MONEY at the time to produce just one CARDINAL beef patty PERSON Concept to really demonstrate that his technology is possible and that it can be done. But wait let me grow and produce culture chicken is essentially with isolate chicken styles from chickens without having to kill them so from a small biopsy for instance Be mercy cells in a liquid broth that contains the nutrients that the cells need to survive and be healthy and to grow we really need these cells to multiply to reach the numbers that are sufficient to make a meat product We're looking into the cells that are really important for me so we think about muscle cells, fat cells, by that isolation, we are able to form those muscle tissues in culture. The culture happens inside of a fermentation tank what we call the biorector which is essentially providing the same conditions as the animal body warm temperatures some serve mechanical stimulation so that the cells are exposed to a very similar conditions that they Inside of the animal After the cells were refraid and reach a certain density the final step is essentially to separate those cells from the liquid broth that they are in Make sure that the product meets our quality and safety standards and then those cells are ready for consumption. Milk, cheese, yogurt, a lot of those arrived from fermentations. The only difference is that they are starting from a different cell type. In this case we're just using the animal cells as the initial and beginning of the product. Eat just as developed chicken nuggets so far with far more textured chicken breast plan for the future. But another cell base meat startup meant this meat has already started working on culturing other animal cells as well. We've done duck we've done chicken and and these are things that our favorites and various parts of the world for instance you know people in America GPE love beef and chicken people in China GPE love ducks so we wanted to show that we at Memphis GPE meets can produce meats that we are the global population love to eat There's a lot of similarity on how we grow the meats from various animals or fish but they're also different because the nutrients they need and how they actually come together to form the final product the meat and I think it's very similar to how we also grow various animals there's similarities in the feed that we give cows and cakes and But there's also differences how we cultivate and it's very similar for us as well. So we've been working with the FDA ORG and the USDFD ORG for the last 3 years DATE and really developing the guidelines on how this food should be regulated when we come to the market as soon as we get regularly approval in the United States GPE people will be able to go to their supermarket and buy it and enjoy it they'll be able to go to a restaurant near them and order me directly from animal cells But it's not just getting the meat right once approved the gates open to a very high potential demand and scaling becomes the next big hurdle So that allows us to invest into allow the economy subscale to drop the price

Raises or drop surprises The nutrients we feed ourselves does the same things we need to drive that down the cell density is another technical element we need to continue to to increase that and hammering on those things of the course the next 510 15 years DATE we'll put it in a place where we're significantly below the cost of this animal protein and that will be one of the main inflection points that will will So here is a close up Of A half CARDINAL eaten Crispy PERSON chicken bite You know what? What I'm really thinking is Just I'm eating chicken. I like chicken. No The normal chickens eat. I don't know where they came from. And so I don't know why I should be very stressed where this came from either. The meat market is worth more than CARDINAL one 1 trillion dollars MONEY annually DATE and there are over 60 CARDINAL startups in the cultured meat field Cultured meat has attracted several prominent investors Richard Branson PERSON and Bill Gates PERSON what is also interesting is that even meet giant such as cargill and Tyson have invested in space it's this destructive potential of the the market as well as the promise to greatly The climate impact of meat production that has attracts the investors. It remains to be seen who will get regulatory approval in which countries and whether consumers will like lab go meet enough to make this switch and while there's no evidence that lab grow meat is any less healthy than traditional meat there's an ongoing debate over how healthy eating meat is in general. But if these products are a success they could be the beginning of a more humane less destructive meat industry. The food on egg industry is the most innovative industry in the world. It's always figured out how to feed a growing population. And we've never failed doing so. And it's been very clear to us that we are part of that and we're gonna figure out how to feed the next three 1 billion QUANTITY people joining us. And I just seen evolution. We can do this a bit differently. We can do this in a way. It is consistent with the kind of people that we wanna be. The kind of planet that we all wanna live in. We can build a food system that reflects really the best characteristics of who we are. And that makes me really helpful. Impossible foods might be the world's most ambitious company. Just listen to founder and CEO Pat Brown PERSON . People wonder how big the plant based meat industry is gonna be. It will be the meet industry in 20 years DATE . We're gonna look back and basically say, wow. Back in the day when we used to use animals to make meat. Yes impossible stated goal really is to replace the use of animals as a food production technology globally by 2035 DATE . That would mean supplying a $ one MONEY . 20 billion CARDINAL industry not to mention a source of sustenance as old as time. To be fair, the company has got a lot of people talking about its products. So, there's this thing called the impossible burger. Let's call the artificial meaning

As old as time. To be fair, the company has got a lot of people talking about its products. So, there's this thing called the impossible burger. Let's call the artificial meat, the realest, fakeest burger in the world. Not that. But before impossible foods can take over the world it's going to have to overcome strong competitors penetrate tough new markets and generally transform its product from a conversation piece into a staple food With the coronavirus turning the world of food upside down this could be the moment when impossible's new fangled meat goes main street. Impossible foods was founded in 2011 DATE when Pat Brown PERSON a long time vegan was nearing the end of an accomplished career in biochemistry. I've been a scientist my whole life and just came to this realization that by far the most important scientific question in the world is what makes me delicious? Pat Brown PERSON at someone call is for his mission. Really doesn't hold back when it comes to talking about wanting to completely replace animal agriculture. Producing meat from animals is the most destructive technology on earth and If we're going to avert We have to find a better way to produce speed Their digestive systems produce large quantities of the powerful greenhouse gas methane In fact it's estimated that livestock farming is responsible for nearly 15% PERCENT of all greenhouse gas emissions. Impossible claims it takes 89% PERCENT less GHGs 87% PERCENT less water and 96% PERCENT less land to produce its burger The key of course would be to get people to actually eat the thing which is where the company's secret ingredient comes in. Hey genetically engineered substance with a bloody iron rich taste like red meat. So him is a very controversial part of the impossible burger. It's also what makes the impossible burger what There are a lot of consumer groups and anti GMO ORG groups that oppose the impossible burger because of the heem. Studies on its safety are pretty short term but the FDA ORG has approved it and the company says it's Safe and there isn't any evidence that it isn't. Critics have also challenged the company's claim to health advantages over traditional meat pointing out that while the impossible burger has less fat sodium and calories then it's beefy cousin it's also more highly processed But let's be real we're talking about mimicking hamburgers here not kale salads. These burgers are definitely better for the environment so that's a plus but they are not necessarily better for your health. And the impossible burger made it debut in 2016 DATE . Their burger began it's life in the public when it was sold at David Shank's PERSON mama Fuku PERSON And they went from sort of higher and fine dining restaurants into high-end burger restaurants like bare burger and mommy burger and then suddenly they started popping up everywhere. This taste like a burger. It taste like meat. This is all made from plants. It's all made from this taste like beef. Does not just look like real meat. Just like a burger it taste like yokers. Relax. No. Doesn't taste like a burger. On the impossible burgers relative meetings but the debate itself was fantastic for advertising help in to propel impossible into major chains like white castle and then in the summer of 2019 DATE into more than 7000 CARDINAL burger kings across the US GPE . To date the company has raised over a one 1 billion dollars MONEY and a funding round in March DATE valued the company at around four 1 billion MONEY . But fake meat is a happening space these days and impossible faces some daunting competition. So now for the start of the hour and that is beyond me. Or plant-based protein company are soaring today DATE . E.

Daunting competition. For the stock of the hour TIME . Beyond me is also making a very meaty burger from plants. They're very non GMO ORG . They stress that all the time. To differentiate themselves from impossible. Five CARDINAL plant material to make it take on the the texture and appearance in aroma of of animal protein. Right. But we won't do that. Had one of the biggest IPOs of the year in 2019 DATE so impossible which is still privately held has some catching up to do. That you won't hear Pat Brown PERSON knocking his biggest competitor. But success they have the same mission we have the only rival we care about is the incumbent animal based industry Rivals or not impossible and beyond certainly agree on one CARDINAL thing the true prize isn't the American NORP market it's China GPE . 27% PERCENT of the world's meat is consumed in China GPE Prepared to just nine% in the US GPE . The Chinese NORP population eats a ton QUANTITY of meat they're huge market China GPE 's a really interesting case because they have long had vegetarian cuisine as part of their culinary culture and whether they are looking for meat replacements is still an open question. What we found in our reporting is that some consumers are excited about them. It it's just we don't know if it's gonna be enough. To improve its prospects impossible is developing a plant based replacement for pork. Globally pork is the most widely consumed meat. It's almost 40% PERCENT of all the meat consumed globally. Number one CARDINAL in Europe LOC , number one CARDINAL in China GPE . So, if we're gonna achieve our mission, pork is You know right up there. No word yet on when impossible pork will be available. This morning TIME growing concerns about the nation's food supply The impact of the coronavirus on the price and availability of meat has given a boost to companies like impossible foods. Over the 4 weeks ending April 19 DATE sales of plant based meat increased. But impossible has acknowledged some negative effects from the pandemic as well. This being a product that has primarily been served in restaurants they took a pretty big hit with all the food restaurant down although the company doesn't wanna say you know how much of a hit They have however announced some new retail rollouts recently they announced that they're going to be rolling out with Kroger ORG supermarkets and that that's big that's that's great for them. The question of whether this is like a long term See change for these companies. I don't know. Stop the way and see It's safe to say impossible stands a slim chance of achieving its goal of replacing the entire meeting industry. But it's early days for the science of plant based meat and it's not impossible that these products could 1 day contribute to a greener more humane future. In the meantime as the technology improves we get to look forward to many more years of this No this is impossible yeah that's what I thought this is the meat burger Tofu ORG burger or anything like that Very much.

What are is a strategically important point on the map of Pakistan GPE it sits very close to Iran GPE actually and the very southern coast it's about a 10 hour TIME drive west of Karachi GPE but it's only about an hour TIME drive to Iran GPE the area is extremely poor it's very aired it doesn't have enough Electricity has been very spotty. One CARDINAL of the most surprising things about visiting Guadar PRODUCT is the high degree of security that is absolutely everywhere. There are armed guards that are required to escort foreign visitors everywhere you go because it is contested region because there have been militant attacks in the past Despite all this guada is a key part of the China GPE Pakistan GPE economic corridor also known as CPEC ORG . The crown jewel of President Xi Jinping PERSON 's Belton Road PERSON initiative. We will leave no stone unturned. Materialize in time and in full. So far just one third of all CPEC ORG projects have been completed in guada none of them have been and the promised improvements for local people like job creation and better infrastructure have not materialized. So what has China GPE got to gain from developing this seemingly obscure city on the Pakistani NORP coast? We have seen this movie before an outside power comes in the Pakistan GPE . It spends heavily on big infrastructure projects. China GPE 's not the first ORDINAL to do it. Right after Pakistan GPE became independent in the late 1940's early 50s DATE the US GPE was sending advisers in the Pakistan GPE to help plants economy US GPE was doing infrastructure projects there too. Those early projects help the US GPE gain Pakistan GPE as an ally against the Soviet Union GPE during the Cold War EVENT . The US GPE has provided about 80 1 billion dollars MONEY in aid to Pakistan GPE since it's independence but overall the result is disappointing. One CARDINAL of the recent attempts was in the late 2000's DATE as part of the US GPE effort to combat terrorism in Afghanistan GPE The number one CARDINAL item on that A package was to build these high visibility infrastructure projects Propose GPE to the United States GPE In the 2000 DATE 's during that period that have become built in road projects China GPE is stepping into a gap which has been left by retreating ambition from the US GPE . Hey The Belton Road initiative is China GPE 's president Xi Jinping PERSON 's signature foreign policy initiative Launched in 2013 DATE it comprises an overland belt stretching through China GPE Asia LOC into Europe LOC and a maritime road A rain southeast Asia LOC through the India Ocean LOC and up past east Africa LOC So a benign way of characterizing China GPE 's belt and road initiative would be infrastructure for influence. The Belt and Road Initiative. Shortly afterwards, China GPE designated Pakistan GPE as it showcase flagship project. So, the China GPE , Pakistan GPE , economic quarter was going to be the biggest and most important showcase for this success of the Belton Road FAC . Pakistan GPE is in great need of infrastructure development. They wanted to create a railway, a highway, All kinds of economic development that is intended to help Pakistan GPE It's meant to provide jobs two. 3 million CARDINAL jobs for Pakistani NORP 's it's meant to provide a two CARDINAL . Five% boost to GDP growth And China GPE would gain economically as well. CPEC ORG was intended to reduce oil and gas roots from the Middle East LOC by thousands of miles QUANTITY away to cut over

Prowth Economically ORG as well. Deepak was intended to reduce oil and gas roots from the Middle East LOC by thousands of miles QUANTITY away to cut over land into western China GPE instead of going around southeast asia by ship. Projects in Pakistan GPE also provide Chinese NORP state owned companies within additional market Chinese NORP workers are brought to Pakistan GPE to build infrastructure and then take wages home. Sea peck is also strategically significant for China GPE and Pakistan GPE . China GPE wants to strengthen this relationship to counter their shared rival India GPE . An instrument of Chinese NORP power as well as a test of Chinese NORP power. If it succeeds China GPE will be demonstrating that it's able to do what great powers have not been able to do in Pakistan GPE including the United States GPE Which is why guada is so important. It's in Pakistan GPE 's beloches and province and area with serious electricity and water shortages. There are different ethnicity they speak a different language from the majority in power in in Islamabad GPE and they feel as the poorest province in Pakistan GPE they have not sufficiently benefit Economic achievements that the rest of Pakistan GPE has had That area is quite contested by the village and liberation army. The people who feel that even Pakistani NORP people have encroached into their territory. So quite a number of people are still staging attacks and they attacked the biggest international hotel in Guatemala Shot GPE up the lobby and killed I think five CARDINAL people But this unsettled city is where the China GPE Pakistan GPE economic corridor is supposed to lead to. His plan to develop Guada GPE into an international port city. Guadar Port FAC has an interesting history and an interesting location too. It's located in Bolucha GPE Stan PERSON . It's about 120 km QUANTITY from Iran GPE . Pakistan GPE purchased this territory from Oman GPE . I think in the 1950 DATE 's. And so for a long time, Pakistan GPE has had on its agenda trying to Actually approach the United States GPE in the 1970 DATE 's and tried to convince the Nixon PERSON administration to pay for a report even offered naval access if States GPE was wanting to pay for that The US GPE rejected Pakistan GPE 's offer concerned that the pork would not be commercially viable and would cause geopolitical tension But in the early 2000's DATE a Chinese NORP company was awarded the contract to build the port and they completed phase one CARDINAL of construction in 2006 DATE The port was then managed by a Singaporean NORP government entity. In 2013 DATE a Chinese NORP port operator took over from the Singaporeans NORP In 2015 DATE China GPE announced that it will expand the port as part of the CPEC ORG initiative but 5 years later DATE little has happened. When you look out at the port you can see it has only three CARDINAL births And all of them were empty And the only ship that was in the port at the time A Pakistan GPE naval forget. Indicated to me that the port is not particularly operational for commercial purposes and Strategic importance in the military sense Eventually China GPE were able to use the port of Guadar PRODUCT as a military base. You know, no one would be surprised if China GPE did use it in that way. I don't think in the short term like it is set up in Jaboti PERSON where it has a permanent base. I think it's more likely to use it as almost like a sort of forward based resupply option. Something I can use when it wants to. Other projects like building Pakistan GPE 's largest airport in Guada GPE and two CARDINAL special economic zones have been delayed and 19 km QUANTITY highway linking the port with the macron coastal highway in Belochester GPE is under construction too. Most of the people who live there and work there already are fishermen. They rely on access to the sea. The way that they highway express highway from the port was originally proposed would have cut off their sea access So that was AA real point of contention with the community. There have been some proposals to allow them at underpass.

Propose would have cut off their sea access and so that was AA real point of contention with the community. There have been some proposals to allow them underpass. It's still a little bit unclear how that is. It's finally going to be resolved. Even if those projects are eventually built, there are serious questions about who will work there. There is a problem with manpower of course in Guadara PERSON . It's a very small city and so one proposal has been well just shipped Chinese NORP workers and from China GPE and build lots of fancy housing for them. The first ORDINAL Chinese NORP build community in Pakistan GPE a 500 1 million dollars MONEY development spanning over 10 1 million square feet QUANTITY with over 60% PERCENT open spaces That kind of proposal is what makes a lot of the Pakistan GPE local people Sad Aguado based journalist express concerns to Bloomberg GPE over projects like this. The journalist spoke anonymously for fear of persecution from the Pakistan GPE government These projects are creating jobs but they're not really creating jobs for the local people of other you know not against economic prosperity but they're against the development that leaves them behind Pakistan GPE doesn't have the money to build these projects. It's gone to the IMF for its 13th bailout since the 1980 DATE 's. By engaging in CPEC ORG projects the government of Pakistan GPE is incurred more deaths from China GPE not only posing challenges for Pakistan GPE but possibly the international community if Pakistan GPE eventually defaults on its debts But CPEC ORG is still set to go on. Even if most current projects haven't been completed, the two CARDINAL countries have recently signed new projects worth 11 1 billion dollars MONEY . Pakistan GPE 's prime minister said the country's economic future is linked with China GPE . It's hard to imagine how the China GPE Pakistan GPE economic corridor is gonna be the game changer that the Pakistan GPE government would like it to be. We're not seeing the economic growth or benefit from the projects that were set out and we're supposed to seem by now we're not seeing the job creation Take delays accumulating debts commercial viability these problems of CPEC ORG are also typical of belt and road projects around the world For China GPE though it's never the narrow accounting perspective that matters it's the bigger strategic benefits as China GPE 's dollars continue to flow as China GPE 's concrete continues to pour China GPE 's influence continues to increase. There was some degree of runaway expectations I think there was also some degree that they weren't extremely forthcoming with the state of the game. The cyber punk 2077 CARDINAL story is very much kind of a story of everything they can and and will go rocking games development Jack PERSON is AI flipped out he wasn't there before. I can't shoot. The release of cyber punk 2077 CARDINAL in December of 2020 DATE we'll go down as one of the most disastrous game launches in history Instantly rewrote the narrative of its celebrated developer city project red. Larger studios with bigger budgets.

Game watches in history and it instantly rewrote the narrative of its celebrated developer city project red. Largest studios with bigger budgets weren't able to create the same quality of open world game. The inside story of the making of cyber punk to picks a process marked by unchecked ambition, unrealistic time And a focus on marketing at the expensive development. Project stock was at its high it was the largest stock in the Polish NORP stock market. Was supposed to be the biggest game of 2020 DATE this was a game that was sorry Keana Reeves PERSON this is a game that was from the makers of the witcher three CARDINAL this was supposed to be the big temple release the last year DATE and for it to become such a disaster for so many people I think we'll have pretty far reaching consequences City projects origins are somewhat unique in the games industry. In the west and Japan GPE delete 80s and 90s DATE were dominated by games through the home council market and characters like Mario PERSON and Sonic NORP the Hedgehog were becoming household names The same was not true in a post soviet NORP and economically depressed poland GPE . Most game was done on PCs and most games were copied and sold in small markets around the country. You could go to the market down the street in Northside GPE and buy and sell CDs and these two CARDINAL guys marching avinsky and Mikal Kitchinski PERSON decided they Start selling CDs and they wind up striking a deal with the people who made a game called Baldres Gate FAC which is kinda like the Seminole ORG role playing game in the late 90s DATE . It was never a business. It was kind of lifestyle. So, we're actually pretty bad with counting money. So, you can kinda think of it almost like You know where Phil Knight PERSON was selling shoes out of the trunk of his car. You know, you can kind of think about it the same way. It was, you know, just selling physical goods and then evolving that into AA much broader enterprise. CD project named for selling CDs would move on from just reselling games to localizing Western NORP and Japanese NORP made Into the Polish NORP language but it wasn't until 2002 DATE that the company would make its own game. The witcher. The witcher is a huge huge series huge fantasy series in Poland GPE and so it was a pretty big deal that these guys got the race to make the video games. The witcher book series is a source of national pride in Poland GPE and a CD project released the witcher too the video game series will become an important economic symbol for poland GPE as well the city project red had become this behemoth of an institution in Poland GPE and they were really big in the polish NORP technology scene because they were getting more worldwide attention than most Polish NORP Barack Obama PERSON came to visit Poland GPE . The prime minister actually gave him a copy of which you took. I'm not very good at video games. But I've been told that Is A great example poems place in the new global economy. But it would be the launch of the Witcher three in 2015 DATE that would elevate CD project red from representing the best of Poland GPE to representing the best of the games industry. I mean really a thing people look for first ORDINAL and foremost I think is that the game is just good and which her three CARDINAL was just a phenomenal game. There's a level of just storytelling and emphasis on on making every side quest count on top of the atmosphere the dialogue the character interactions the different ways stories can end they nail that other open world games felt empty and enforced and the developers of Gave PERSON excuses as to why there couldn't be more rich story or interactions Blew PERSON them out of the water. City project red was They were seen as a studio that was willing to make what the player wanted and to truly put in the love and effort required to make a high quality game that really connects with the people playing with it. For game of the year 2015 DATE is The witcher three CARDINAL .

Quality game that really connects with the people playing with it. For game of the year 2015 DATE is The witcher three CARDINAL . Which are three CARDINAL would go into an over 250 CARDINAL game of the year DATE awards but along with being a critical success for CD project who's also a financial success. Estimates put the sales of which are three CARDINAL at around 20 1 million QUANTITY copies in 2019 DATE A huge step up concerning by 2014 DATE the witcher and the witcher too had only combined to sell eight 1 million QUANTITY copies it was two CARDINAL large expansions for the which are three CARDINAL city project also helps separate themselves from other triple A publishers at the time. Unlock that so Stupid PERSON that this has to hold on. Other games and the most notorious you know one to do this was EA's Star Wars battle front two CARDINAL but they got really aggressive on microtrans actions in a game that already cost at least $60 MONEY you could have paid more if you bought the premium editions but not only was it that they were being very aggressive in Get you to spend money but you could actually get items that helps you win. Well gamers kinda PERSON draw the line in the sand there and they don't like them. City project had done this phenomenal job of marketing themselves as a gamer-friendly company. And I'll say it again. Here at City Project Red ORG . So giving everyone a bunch of free DLC ORG . Was an absolutely no brainer. Hey they said we're not gonna sell you DLC ORG that's like horse armor packs and other nonsense we're gonna just give you a free stuff and then we're gonna sell big expansions as part of the witcher three CARDINAL And not only were they really good They were offered at a fair price and this is a company that was seen as just like a company that really cared about quality and cared about it's customers and we're not doing anything to kinda GPE screw fans over the way that that fans see you at EA and activist and then all the other big publishers do. With a critically and financially successful game as well as the goodwill from the gaming audience all the focus which shift to CD projects next release 27 CARDINAL seven. It's actually funny. They first ORDINAL announced it through like a press release. And then they showed off a trailer. A vegan Flying cars lots of stuff but it wasn't really until after the witcher three CARDINAL that's began really like building up this fever's level of hype city predator wouldn't put out another trailer for cyber punk until 2018 DATE at Ethree trade show. And they showed off a it was like a 2 minute TIME trailer of cyber punk. Look pretty rad. And then they showed behind the scenes for Ethree ORG attendees for Press ORG and anyone else who could get score an appointment in there they showed this 45 minutes Emma and A blue people are like Welcome to the game play demo walk through of CD project reds upcoming title cyber punk 2077 CARDINAL the game player about Is from a work in progress version of the game everything you see is potentially subject to change. Paul Lee PERSON

Everything you see is potentially subject to chin. Paul Lee PERSON This if they can live up to what they showed me It's game over. It all looks incredible impressive. They had enough action, enough narrative beats with just the right amount of attention. They touted how each of these NPCs, their thousands CARDINAL of them, each one with their own daily routines and everything. We've greatly enhanced our crowd and community system To create the most believable city in any open world game today So yeah so people were certainly blown away by this demo at 183 CARDINAL awards and just people left the theater just in in where they didn't know of course is that the demo was completely fake. Fake demos are common at Ethree ORG . Studios put together bills of games to show off what they intend the game to be like rather than Actual state of the game. What was unique about this demo was that it was impressively long. It kinda PERSON plays into this idea that city project is very much on marketing driven company and so demos were really, really important to them. So, it's really important that they make the demo blow people away but it did. But that might have come with the cost of like some time they could have been A year later DATE at Ethree 2019 DATE fans will get another big surprise. He's welcome. Is really going to be breathtaking. You're breathtaking. The cyber punk trailers showed gorgeous Beautiful ORG lighting really cutting edge technology when it comes to the rendering of the game itself people are very excited to be immersed in this gorgeous cyber punk world they saw over eight 1 million CARDINAL pre orders which is a ridiculously large amount for any title to sell let alone Resell PERSON . Pretty much in a straight line. If you just look at like the polish NORP stock market like the wig index but on CD project stock was at its high. It was the largest stock in the in in the in the index. And that was around the time that they announced that We're becoming in April of 2020 DATE . Behind the scenes, people were pretty shocked that they were saying April DATE . I I don't think I sing all a person who worked on that game. Actually, thought they had a chance of coming out in April of 2020 DATE So, in April of 2019 DATE , I published an article for Kataku GPE about the making of a game called anthem which is a game from buyer where that was disastrous in many ways and the article kind of ran through why that was. Afterwards, I started hearing from other developers who Stories ORG to share that they said sounded a whole lot like anthems the deadline is unrealistic the direction keeps changing things are flowering we're going through a lot of problems this sounds exactly like what you wrote about anthem around that same time Perhaps go incidentally I heard from the CEO of Cedar Project LOC where I wanted to reach out to me specifically to talk about crunch. CD project red had a reputation for crunch especially during the development which are three CARDINAL there a management wanted them to have a reputation for treating work as well and not forcing them to go through so March DATE and co-founder and co-CEO of CD project red came to me and said hey I wanna make AA Right now that we're not gonna force anybody to crash that people will not have to work mandatory overtime on this project. Over the course of reporting Bloomberg PERSON has conducted interviews with more than 20 CARDINAL current and former CD project staff most of whom requested anonymity so it's not to risk their careers Decline ORG to comment on the process or provide interviews for the story. The company would end up delaying the game three CARDINAL different times first ORDINAL pushing from an April 2020 DATE release to September DATE then November DATE and once again December DATE

The company would end up delaying the game three CARDINAL different times first ORDINAL pushing from an April 2020 DATE release to September DATE then November DATE and once again December 2020 DATE As well as canceling some features and while those measures helped developers still said they were under significant crunch Including one CARDINAL former audio programmer who claimed to work up to 13 hours TIME a day 5 days a week and stating he had seen friends who had lost their families over this This was not a big secret in the office that a game was not going to be ready but A similar sort of thing happened with the richer three CARDINAL and a similar sort of thing happens with a lot of games where they don't seem ready until suddenly everything just clicks. Some of the best games ever made like would create it through this process. I don't know that it's the most efficient or the wisest way to make video games but it it's quite a lot of people too. I think that management there has genuinely To change it or at least said they wanted to change it but it is proven very difficult Change that when you make games in this one specific way. Game studios, some of them see crunch as part of their core culture. That all of their games that they've made under crunch have been successful. So, it must be a core element to the magic recipe for creating good games and that's So chronic overwork Degrades how effective someone is to the point where then it becomes negative and overworking them is just getting you less and less productivity. Having made the witcher three CARDINAL were kinda riding on that high you could call it arrogance or confidence or whatever you wanna call it of having made the witch or three and I think that like having a certain level confidence can certainly be a good thing but in this case it could also be dangerous because it kind of blinded them to the reality which was that this game wasn't going to Of us. Joni Pictures Entertainment ORG is reeling from what maybe the biggest emoji devastating computer hacking in Hollywood GPE 's history. Hackers attacked in waves first crippling Sony ORG 's internal systems then leaking five CARDINAL Sony ORG movies online. Today DATE the US GPE government pointed the finger a blame directly at North Korea GPE for the devastating cyber attack against Sony ORG pictures Tony PERSON pulling the plug on the interview saying it will not show the controversial comedy about an assassination attempt on North Korea's GPE leader. The Sony ORG pictures hacking was taken very seriously because it was an attack on the Free world. Freedom and our ability to exchange information freely have been disrupted by a country that we knew very little about. North Korea GPE has reportedly made attempts to steal COVID-19 vaccine technology by hacking from suitable giant fires. The justice department ORG has charged three CARDINAL North Korean NORP hackers over a wide ranging scheme that included the attempt theft of billions of dollars MONEY from multiple companies Despite so many attacks blamed on North Korea GPE It was not much known about the people behind the hacking attacks In my aim was to review who these people are and what they're like, what they're operations are like And on what your dreams and fierce war.

Am I aim was to review who these people are what they are like what they're operations are like And on what your dreams and fierce war. Man, man. My name is Sam Tim PERSON I'm a reporter for Bloomberg News ORG In our ruler story for business week about North Korean NORP hackers My story is about people who are sent from North Korea GPE to countries like China GPE For the regime Enemies And make money North Korea GPE is cyberbilities begin In the 1970 DATE 's with a lot of students going to countries like Russia GPE And even use Germany GPE to learn coding it was aimed at improving the predictivity of factories at home The current leader Kim Jong-un's PERSON father Kim Jong-il PERSON thought that it would be a good idea to develop a team on army of people who could have For North Korea's GPE military So they began this team of The hackers who would spy For the North Korea GPE regime and also go out there and make heart currency for the regime. I think Kim Jong-un PERSON takes The hacking ability more seriously than his father. He also enjoys. Text sadness as well You know he's often shown Travelling on his airplane Where on the desk there's a mac computer He understands the importance of computers you understand the importance of employing technology to improve predictivity. If he's economy North Korea GPE is an isolated country With it's economy From the US GPE and the international community basically it does not have the resources and and money to build a kind of conventional weapons that other countries are able to build so what happens is nuclear concentrates Resources on building nuclear arms and missiles which It's the kind of whipples that gives North Korea GPE an instant edge. Think of cyber hacking abilities in that context. Doesn't cost them much money But if you have the right people and if you have the right training Computer systems of other countries. That's what north korea GPE is after But if you consider the fact that there are only about a 1000 CARDINAL IP addresses in North Korea GPE available. And many of them are basically From Chinese NORP communications companies You can kinda PERSON tell why North Korea's GPE willing to send its hackers abroad rather than operate from within. What's the matter with operating from within? Well First ORDINAL of all he would mean that a lot of information would have to be Coming in from the outside world which could risk exposing the government and the people To whatever truth there might be about them so there they're sending their train Hackers to china in other countries where access to information is better. But at the same time because these are allies. And also because they have their diplomat station in countries like these like China GPE . Able to regulate and control these hackers better Formally North Korea PERSON denies engaging in hacking and describe tank to Jason's ORG to that As enemy propaganda. It took me at least half CARDINAL a year to track down these people it felt like a water goose chase in the beginning

And realize that there was a lot more to do in China GPE because he had more access information And he asked that he'd be sent back to china GPE . And there was also recruitment going on for people who would actually Do coding But really hacking for North Korea GPE so he applied and he got the job Once you got to the border he crossed by foot and from there he took a bus and then Winnie At the station he would spend years DATE in later he learned that that three CARDINAL story building in the heart of the city Was actually provided for free actually Bye a Chinese NORP man who had business ties in North Korea GPE There were actually two CARDINAL other people that I had met They all said that they go into this freelance website for programmers and clients from around the world would come. And give them orders. Give them jobs to do. Some of the jobs given to John were cracking open Commercially successful Antivirus programs. It was he was able to open that up. He replicated that program. Into another product which is quite would be packaged As a whole different part to be sold to other people. He also created what we now called bots. They are very popular on nine CARDINAL games. Including lineage. That would just roam around without any supervision. From the user Hey basically trade items without the user on that game He would throw that bar on lineage and sell it for almost $100 MONEY . Another defector said the money from client was wired primarily via PayPal to account control by reminders because they were the only ones with access to legitimate bank accounts. Tell how to make at least $100 thousand MONEY a year And he doesn't get to keep most of it. Actually, most of the money goes to minders to the North Korean NORP regime but if you don't need the quarter DATE . The reminders will That they'll put enough pressure on you. If that happens repeatedly You will face the growing odds of being sent back home. Among the three CARDINAL people that I spoke to and there's a common thing that they all tell me which is that when every Saturday DATE they have to do this propaganda session which Hey basically about gathering all the hackers together into a room and they have to recite Ever messages whatever lines come from Pyongyang GPE . About the cute family about socialism If you're a specimen someone who with a free set of mine that's stressful One CARDINAL person actually was really stressed out About North Korea GPE Once you're watching China GPE during the propaganda sessions you just couldn't take it Was a senior member of the unit that he belong to And he was good at Chinese NORP as well. Whenever the senior North Korean NORP official came from North Korea GPE . To check on the hiking units in China GPE . John PERSON with a company that official he doesn't provide me details But he calls you Unsavory ORG instant that happened between him and an official that he was travelling with. And that altercation Prompted him To the fact But there was no one that he could turn to after the facting He would Rome GPE wrong China GPE . He called me that he actually enjoyed it He actually enjoyed the freedom of You know not being known to anybody Just roaming around a country that was huge How did it make the money that he did to carry on?

Just roaming around a country that was huge How did it make the money that he did to carry on He did the same thing. He did. You know, at the North Korean NORP unit, he he would take orders. He would reverse engineers off to earth to make money. All of a sudden it's just He wanted to find a place where where he could just settle down He contacted South Korean NORP authorities. No. Last time I checked they had a baby He works for a softer company Ironically Company What keeps coming up in my head Even After I spoke to these people Is there was one CARDINAL common thing about them which was the sense of delusion Once they have access to outside We're able to freely roam in the internet. There was a sparr. And what they realize that there's a discrepancy between what they think is really happening and what North Korea GPE is telling them every Saturday DATE morning TIME that's when the spa gets bigger. That little fire. Is what eventually drives them To decide to leave Give me a few texts Huge ORG risk on your lives. Step into the shopping center of the future Since they started popping up in the 1950 DATE 's Malls LOC have been the quintessential American NORP shopping experience. Dedicated to the wonders and excesses of retail, food service, and entertainment. The rise of the mall coincided with the growth of the suburbs. Of the malls really is the 1970 DATE 's sometimes referred to as the mauling of But really thrived at Some sort of public gathering space some sort of social life in addition to actually giving people places to shop. Over the past few decades DATE before then lots of developers were building malls and it kinda coincide it with the growth of highways so as more people started travelling

Past few decades DATE before then lots of developers were building malls and it kinda coincide it with the growth of highways so as more people started traveling in interstate start being built developers really wanted to put something to attract people to stop. Take a look at an average American NORP mall today DATE however and you'll see a very different picture. Close stores and empty hallways became the norm in many malls even before COVID-19 delivered them another set of problems in 2020 DATE . So what happened This is the story of the rise and fall of american NORP malls. When malls work best they survived and thrived thanks to their anchor stores. Those are the stores that are on the edges of the malls and that are outward facing to the parking lot. So if you're a shopper, you're gonna walk through one CARDINAL of these big, usually a department store. So, if you're thinking about Macy ORG 's or Sears ORG or JC Penny PERSON Those are called the anchor stores. So once shoppers are done shopping there maybe they wander to the middle part of the mall shopping at the other apparel shops or even going to buy some food but you really had to have you know a reason for people to shop in the first ORDINAL place. Because anchors bringing all those people they tend to pay very little rent around 80% PERCENT of income from all owners come from the inline stores inside the mall. Over the past few decades DATE , malls have been facing challenges from all sides. The first ORDINAL being there's just too many of them. As early as in the 90s DATE the malls were beginning to compete with each other We have a lot more retail square footage per capita than Canada GPE . We have only seven CARDINAL times more retail square footage per capita than Europe LOC . Also had to contend with a new challenge that was growing fast. Mall started to suffer in the early 2000's DATE with the rise of online shopping. Suddenly, they didn't have that captive audience who had to go to the mall to buy something. You didn't have to get up, get in your car, drive all the way to the mall, and then see a bunch of other people. You could just do it from the comfort of your home. Department stores overall have become less relevant over the years DATE Have fallen totally off and that's Sears ORG JCPenney several bankruptcy in this space have have really hurt the industry. But as department stores go so does the mall often times so if department stores start closing locations that means they're usually leaving malls. This is the Greenbrier Mall FAC in Southwest Atlanta GPE Georgia GPE . It's in many ways emblematic of the problems facing malls today DATE . It's been there since 1965 DATE . So, for more than half CARDINAL of a century, it's been serving this area of Atlanta GPE . That's predominantly black Also it's middle class neighborhood It started with anchor stories that were department stores so we had JCPenney and then Riches ORG which was later bought by Macy ORG 's so you These two CARDINAL national chains It had the first ORDINAL Chick fil A in a mall like that type of format. So when you think about the history of malls like Greenbrier PERSON had like the perfect template. But now Macy ORG 's will be exiting the mall meaning that the mall will be left without an anchor which is vital to attracting other shopper Come into the stores. Ring Brio then because it's kind of an example or a test for all these other middleing malls across America GPE about what do you do when these large department stores as a business decision on there and are trying to just stay in the high quality malls how does a middleing mall survive What's there next strategy

Greenbrier PERSON is a textbook example of how closely the deterioration of the middle class in the US GPE is tied to the health of its malls. The median income for the surrounding area has reduced by $ 6905 MONEY over the past 15 years DATE to a total of $ 20756 MONEY per year and yet residents in store owners hope that We'll see better days Malls NORP are made up of the people and communities that help fuel them. Greenbrier PERSON is still a place that people go to and cherish even if on paper it doesn't have the elements that make it a thriving mall. Of the existing Near a big mall that had AA They're very To see that taken away from them Macy ORG 's is gone. Green Briar PERSON may try to take inspiration from what many malls were doing in the years DATE following the financial crisis. Focusing not on shopping but experiences. Dramatic as a water park or hosting like concerts to have people wanna come other than just to buy stuff. Having Instagramable moments making sure your store is pretty that people wanna take a photo and post it on Instagram NORP or Twitter Historically PERSON , the mall has always been a place for teenagers. You like to hang out, see your friends, and also kinda be seen at the mall and that hasn't completely changed like before the pandemic, about 95% PERCENT of gen Z. So, today DATE 's teenagers had gone to a mall in a three-month DATE period. So, teenager Hopefully you're really winning over a loyal customer for life. But thanks to lockdowns across the country most malls at one CARDINAL point or another were shuttered in 2020 DATE That means no one using the multibillion dollar MONEY American NORP dream malls indoor ski slow. No one going to the king of pressure malls indoor skydiving attraction Hey basically the pandemic gave malls what they didn't need another problem What would your net income or net operating income have been in 2022 DATE COVID and what is it now in a post COVID world? So, our views is roughly 10% PERCENT hit to net income over that period. That's Vince Taboni from the analytics firm Green St Advisors ORG which rates American NORP malls from A to D just like a report card and if malls did have a report card they wouldn't exactly make honor roll You're in the US GPE adding a 1000 CARDINAL malls in the country there are roughly 250 CARDINAL mi we grade a minus or better. The B and C quality malls which is the vast majority of the malls by count we think are on a negative trajectory and it's gonna depend on a lot of the local dynamics, ownership Decisions ORG around how much money do you invest in the property? Well, determine whether this, you know, mall can survive as retail Rapidly ORG melting ice cube A mall is really are doing just fine. Some of the most

Own mostly beat a D malls in the past few years DATE A malls really are doing just fine. Some of the most productive shopping centers in the country are super high yen so I'm talking about Bal Harbor Shops FAC down in Miami GPE Florida GPE there is Americana Manhassett PERSON in Long Island's GPE Gold Coast LOC the Grove NORP in Los Angeles GPE A lot of that has to do with efficiency of their properties so their sales per square foot are really high but also they've invested a lot in their actual mall cuz it has to look beautiful. It has to have all the services that that a So what will the future hold for less sought after malls that can't revive their golden years DATE ? For many of these malls, it will mean closure and then, hopefully, conversion. If they can't get AA new use to come in it's expensive but you can just demolish it Quite a lot of sights just sitting waiting Has been picking up more and more of those building their fulfillment centers Also a lot of community think this is an opportunity you know to read about It was never originally designed The number one reuse of an existing mall is as work space. It's actually pretty easy and just throw some carpeting down. Cut a few more windows And turn it into office space. Sort of number two CARDINAL reuse of malls is either in medical health care or education. Lots of great examples of community colleges all the way down to elementary schools. Moving into malls Then the third ORDINAL strategy that I still I wish happened more is actually just demolishing the mall and three graining Reconstructing PERSON the wetlands that used to be there and that frankly we never should have built on in Place. Pretty parks the gardens Post analysts save post pandemic retail shopping could breed some life back into the American NORP mall many are not long for this world. Depending on where you live it might be time to make one last visit. Grab some food. Do some shopping. Say farewell. President Trump PERSON traveled to Utah GPE today DATE where he dramatically cut back the size of two CARDINAL national monuments in that state. When former president Donald Trump PERSON announced plans to scale back two CARDINAL national monuments in Utah GPE there was outcry from a lot of people. One CARDINAL company in particular Really is a resistance brand. They've

Company in particular Liberal resistance against President Donald Trump PERSON and really put themselves at the forefront of that movement In 2017 DATE it sued the Trump PERSON administration for sort of slashing the size of these two CARDINAL national monuments in Utah GPE that were kinda meccas PERSON for for climbers it's set at the time joining the legal fracus was both extraordinary and obvious. So the company's general council ORG said it took exactly One CARDINAL email to the board. Lawsuits we're losing this planet. And And just let evil win. Patagonia GPE is in business to save our home planet And then Assholes PERSON out. Very implicit. Running up to the election Digital ORG tool to help people find the polling place And on that Digital ORG platform It says both the climate deniers out of office. Again and again on loop. This isn't the first ORDINAL time that taking a stand has paid off the Patagonia GPE The business which is now worth over a one 1 billion dollars MONEY was built on it. I couldn't care less about making more money. But by doing the right thing it always ends up making me more money. So is this all a Strategy is a sort of premeditated strategy who knows I mean shown art's been very From the start and makes no bones about He calls himself a dirt bag climber. Sort of a textbook marriage of Profit If you wanna understand the entrepreneurs studied at Juan Alinquin PERSON Cuz you know Saying you know this sucks. And I'm gonna do it my own way. Course like every other teenage kid I had no idea what I wanna do in my life. When I was 16 years old DATE I took off and drove across the country Went into the Wind River Range and discovered mountains. Patagonia GPE was born out of rock climbers first ORDINAL business she and art equipment which made in soul climbing supplies. Yvonne Shonard PERSON was a blacksmith in the 50s DATE and he started selling climbing gear at the back of his car that was last harmful to rock faces this is sort of The origin story of the company it's called itself the activist company A activist company 6 months DATE out of the year art is a blacksmith he makes mountain climbing gear the other half of the year he claims In 9068 DATE Evan Shenard and four CARDINAL friends including Doug Tomkins PERSON the late founders of the North Face LOC brand embarked on the ultimate road trip from California GPE where they were based to Patagonia GPE in Argentina GPE This trip The adoption Became a lifestyle and how these friends became pioneer of the outdoor in the street. She went out moved from selling petons to polyester and in the 70s DATE pattago

She would not move from selling petons to polyester and in the 70s Patagonia GPE was born. In 1973 DATE she went out and his wife Melinda PERSON opened the very first ORDINAL Patagonia GPE store in Ventura GPE California GPE where the companies had quarters remained today DATE Melinda Schuinard PERSON was the driving force behind many of the employee benefits like on-site childcare that helped the company achieve an impressive four% employee turnover rate The retail and consumer product sector average is more than triple that at 13% PERCENT . I do think that Patagonia GPE was a leader one CARDINAL of the first ORDINAL corporations to Into account, you know, the human capital and make sure that their staff, all their employees were cared for, in many ways, not just wages, but also they just cared about their people Patagonia GPE began donating 10% PERCENT of its profits to grassroots organizations in 1985 DATE this later became the one% ORG of sales that she and odd labels on earth tax For landscapes. For us living on this planet. While Patagonia GPE was creating the blueprint of how to be a socially conscious brand it was also turning a profit It even made ink magazines list of the fastest growing privately held companies. So every time the company makes a decision to do something socially environmentally active. Any of the other leaders of the company The more money Patagonia GPE made the more it gave away under its philanthropic program. Between 1989 and 1991 DATE the payroll group by 40% PERCENT . But trouble was on the horizon I think for 1991 DATE we are looking at a recession The question is how deep that recession is going to be and how long will be in it? Sales fell flat and the bank called in the company's revolving loans. A company that prided itself on taking care of its own laid off 120 CARDINAL people roughly 20% PERCENT of its workforce When we decided that we're gonna start doing things differently and we're gonna start running the company as if it's going to be here 100 years DATE . With a renewed sense of purpose Patagonia GPE was ready for what it called business unusual. It started with the costly move to recycled an organic materials before launching a clothing repair service to discourage fast fashion And Patagoni ORG 's influence was growing. What was intended is she went out's philosophical handbook for employees became an international blueprint for sustainable business printed in 10 CARDINAL languages. What's interesting to me is that all this I hate the term on brand but it's very on brand it really works for the kind of company he's created it works for the kind of employees he's been able to recruit and retain it all it's it's very seamless in terms of the identity Of him and the company and and what it means In the marketplace. It's over time the company's mission Marketing have become the same thing. The inflection point came in 2011 DATE Patagonia GPE took out a huge ad in the New York Times ORG That said don't buy this jacket And it sort of Got into the nitty gritty and You know, the carbon footprint and the water footprint that goes into, you know, a piece of apparel like a parka. And at the time shown art said the best jacket for our planet is one that already exists. So the company at that time said it need to address the issue of consumerism which coming from a for profit business hits pretty hypocritical. As the company encouraged its customers to buy less it's annual DATE sales increased by almost 40% PERCENT . The Stanson GPE . Talking about consumerism in a critical light while very much being a part of it. Fast fashion Tap on the list of environmental destruct And not just destroying the environment but impacting human.

Is top on the list environmental Impacting human health They are in the fashion industry there are clothing retailer To come head to head with that is courageous. You're not only Trying to create a product that'll last but you're also educating an entire generation of people In 2014 DATE Rose Makari PERSON was appointed a CEO. During the next 6 years DATE she grew Patagonia GPE into a one 1 billion dollars MONEY company what also scaling up it's environmental goals and bringing them all political voice to its activism Yvonne PERSON had this model where he was basically saying you can have a great business you can make quality product but you can also do the right thing By the environment, by your employees, by your community, and that to me was like the most holistic vision of business that I'd ever seen. So right now, Patagonia GPE has a team of about 20 CARDINAL people. Solely focused on activism and grants and this all comes at a time in the past decade DATE when consumers are paying much more attention to the social footprint of companies and where they buy their goods. So, what's happened is all this is good business for Patagonia GPE in the past 10 years DATE . Revenue and profit at the company of Quadruple NORP it's private but estimates are it does about a one 1 billion dollars MONEY in annual DATE sales which is sizable And that's part of the reason why it's been such a fortune cycle as it's ramped up it's activism and become more vocal on these things It's resonated with the market As the company branched out into other areas including adventure capital fund for environmental causes and sustainable food revenue reached a new peak of over one 1 billion dollars MONEY in 2017 DATE . But this was still small change compared to fast fashion heavy weights like Nike ORG who made 37 1 billion dollars MONEY that same year Patagonia GPE 's conscience hasn't always been reflected in its customer base either. Personalized bests have become the go to corporate uniform. And the expensive price tag has helped the brand and the nickname Patagucci ORG . It's expensive. Stuff. It's expensive apparel and that is part of their calculus in terms of the activism, you know, a lot of the more sustainable parts of the supply chain are, there's a premium for organic cotton or sustainable down. We've had a Gucci PERSON label is is a symptom of that. Go to the office and that's because of the image that the the brand projects and so they have to The fact although they you know preach for the environment I want to stand for good Things of the wrong success. Patagonia GPE set sales records in the first 3 years DATE of the Trump PERSON administration. Now, in 2020 DATE , things have changed. Is COVID-19 brought the business well to a halt and the American NORP people voted in a new administration Patagonia GPE appointed brian gallet as CEO. As far as it's CEO transition goes this one's happening quite strangely There there's no real budget for next year DATE yet because of everything that's going on and I'll be uncertainty around that. Patagonia GPE 's new focus is going to be on forging Relationship LOC with the Biden PERSON administration. It should be a more close relationship but gallery still has his guard up during the Obama PERSON administration they didn't always agree and he expects the same with Biden PERSON in the White House FAC They plan to bring litigation wherever needed against any government needed

They plan to bring litigation wherever needed against any government needed About the issues that they care about and that's climate change in the environment

Want more indoor outdoor options So exciting. Sustainability and everything we do. So, really forward looking. Good? Ok. From one CARDINAL of the newest work spaces at the google plex in mountain view California GPE this is Bloomberg Studio PERSON 100 CARDINAL . With alphabet CFO ORG Ruth Porat Far from her childhood home her father was a physicist at Stanford ORG her mother a psychologist after graduating from Stanford ORG herself and then earning a couple more advanced degrees poor at landed her first ORDINAL job on Wall St in 1987 DATE where she would spend almost three decades DATE until googles co-founders lord Two CARDINAL silicon valley. It's wonderful to be here with you. It's great to have you here at the Google Play. Oh, thank you for having us. So, we are at Google ORG headquarters in Mt. View FAC and at this very same time, you are making massive investments in New York GPE office. Real estate, you're expanding, headcount in Atlanta GPE , and Chicago GPE , and Washington DC GPE . What's the strate Behind all of this. Well, at the core, we believe in hybrid work. So, we do wanna bring people back on campuses but not full time. We're thinking of probably a three CARDINAL , two, work week, but we think coming together is just such a core part of innovation, serendipity, culture, every element of it. And we're growing in a really rapid So we are excited to be expanding our real estate footprint and then we also wanted to make sure that we're meeting people where they wanna be and so enlarging the number of sites that we have available for people in particular sites where you have great diverse populations told me that googlers will This option. Really forever. You're embracing this massive cultural shift but what are the risks you know what are you worry about So the positive we've seen is there's a productivity uplift we believe in giving people the opportunity to be at home some of the time not do the commute be able to deal with everything else in their life Coming into the office. So, the risk is I think about my career and so much of the benefit in my career was the informal coaching, being part brought into meetings, all of the touch points that you have and so, I think that one of the most important things for all of us is leaders Is we need to evolve the way we lead. We need to make sure that we're thinking about this hybrid work life and why that's the way to be the best magnet for talent and make sure that we're continuing to reinforce all of those great practices while opening up new great practice Speaking of your career before Morgan Stanley ORG and you started your career on Wall St in 1987 DATE talk to us about the journey of going from Big Banks to big tech Did you make that leap and what impact did you wanna have Well I'd love to hang at work and Stanley PERSON and I became CFO ORG the day James Gorman PERSON became CEO yes need to join him in that and that journey and that was January 2010 DATE We were still recovering coming out of the financial crisis. There were still some pretty rocky days and a lot of decisions that needed to be made and then I got to a point where I felt like we were in a great spot at Morgan Stanley ORG and obviously, it's continue to do really well and I just wanted that next chapter. My view in my career, I've always been focused on and I'm continually learning and I feel Hit a plateau the right questions what's my highest and best use and it's been it's been an extraordinary time. You also.

Continually learning and I feel like when you hit a plateau the right questions what's my highest and best use and it's been it's been an extraordinary time. You also survived Wall St in the 80s DATE and 90s. Which is you know notorious boys club. And silicon valley has sort of come to be known as a boys club of its own. How would you Those two CARDINAL cultures. Starting my career many To go it was much it it was tough and much worse than it is now and it evolved no question about it not where it needs to be but certainly evolved and I saw it through my career I would say the biggest difference out here is the level of impatience and I love it it's the view as if you can do some of the extraordin Breakthroughs ORG . That we have out here. If you can do natural language translation, everything we do with AI ORG , with VR ORG , with self-driving cars, why can't you fix this now? And that level of impatience, I think is fantastic. Legend has it that when you got to google, you were gonna rain in the spending, tighten up on the moon Your nickname I believe was Ruth Vader PERSON Was that a tough job to take on? I think the the narrative was written before I got here. Yeah. And what I find most interesting about that is I firmly believe the single most important thing in capital location is investing for long term growth. I think if you don't, you are sowing the seeds of your long-term decline and I learned that really early on in my career. Now, if you're investing In an industry like this and trying to do truly transformative things by definition everything can't succeed and so by definition you should have the metrics and data and milestones to assess is it working or is it not because if everything's working Or if you think everything's working, I would say one CARDINAL or two CARDINAL things are wrong. Either you're not reaching high enough You're not being honest enough with yourself about the pace of breakthrough whether you're gonna get there. So, to me, Natural part you know kind of a sister How are you doing with the risk that you're taking stack rack them and figure out what's at the bottom so you can redeploy those resources to the top they go together actually and so I find the narrative False choice. That it's either about growth or it's about pruning stack ranking. They go together and and you have to think of them as actually empowering one another. The treasury department during the great recession what lessons did you take away from that what struck me is a lot of the lessons from the financial crisis are relevant in good times and bad times so the most important is it's easier to prevent than to fix and and so you know there was that was really clear during the financial crisis the financial crisis was about Liquidity and it dried up quickly and it would have been really easy 6 to 12 months DATE prior to build in durable equity you couldn't do it in the moment and so this notion about really building a solid foundation on which you operate To do that ahead of time. It needs to be all of the work we do on trust and safety and content moderation, security, The foundation on which you can build everything else. It said to me you have to have the will and the means and too often by the time you have the will you no longer have the means his comment was be decisive act early even in the absence of information I think that's true in this whole notion Investing for long-term growth because if you're not actually assessing progress along the way and you just assume, you know, we can keep investing in everything. What time are we in now what's your read on the economy today DATE especially with ri Inflation. Hey look I think back to March of 2020 DATE and where we were and I think of all of the intervention and steps that have been taken since then and you've certainly seen the recovery coming out the back and and it's been really gratifying from those those painful days to see the the breakthroughs that we've had not just on the medical front but we've also seen Biggest concerns in particular is you're seeing us go through a digital transformation and the acceleration of it is ensuring that everyone has the skills.

Biggest concerns in particular is you're seeing us go through a digital transformation and the acceleration of it is ensuring that everyone has the skills, the digital training, and skills to thrive in this new economy. Google now reaches more than half CARDINAL the people on the planet. Why shouldn't we view google as a monopoly? We often say that people come to Google not because they have to but because they want to. It's really opening the world for for so many people. So, that's that's the intent. I wanna talk a little bit about regulation You were drawn to Eminem ORG in your early days DATE at Morgan Microsoft ORG is making some big acquisitions. Deals that some think Google maybe would have wanted to win in a former life. Is anti trust scrutiny constraining any of your business plans? And your ability to compete? So the main thing that we've done throughout our life of Google ORG is really invest in innovation. It's organic growth. And we're continuing to do that at a really rapid clip. We have then layered onto it. Tuck in acquisitions and larger acquisitions and we're continuing to be active. More than the smaller one CARDINAL Add ons to be fair but we think there's a lot of opportunity still ahead of us and so we're continuing to invest in partnerships and in Acquisitions and do you think that there's there's still upside in a lot of different areas. So, would you say this regulatory scrutiny isn't slowing you down? It's really important for those of us in certain leadership positions to be very focused on constructively engaging and working with regulators on what are the issues. What is it they're trying to solve and how can we constructively engage with them At the same time our engineers should focus on innovation and continuing to kind of up the barn everything we're doing address what is most helpful for our users google is facing more serious legal threats at this time in the United States GPE than the other big tech companies How are those conversations with regulators going are they frustrating At this point. Well, there's certain elements that that are frustrating because i listen to the outline of some of the proposed legislation and I think it's inconsistent with some of the priorities for public policy. So, as an example There are there's a lot of focus on what what is called self preferencing. Are you putting too many of your own products together? But during the pandemic one and three CARDINAL small businesses said they would have failed without digital skills Why? Because what they were able to do is connect with their users in different ways. So, if you go search for a small business, you can then go to a map and you can get directed to the small business. That's a good thing. We have 6000 CARDINAL small Businesses who wrote in and said, you know what? We need these digital tools and skills. The number of things on racial equity. A real

Good thing. We have 6000 CARDINAL small businesses who wrote in and said, you know what? We need these digital tools and skills. Same with the number of things on racial equity. Real surge and searches about where can I where's a black-owned business near me and the ability to direct people through search and maps. So, I think that once really important and Said PERSON it's about constructive engagement. Let's make sure we understand what they're trying to solve and work with them on what is it that we're trying to address through products so that the products are helpful in the ways that they want. Facebook has taken a serious reputational hit Has that had ripple effects or created collateral damage for Google ORG ? Well I think that whenever there's a backdrop that's that's It has ripple effects but what we're really underscoring is all of the steps and investments that we are making to really protect the ecosystem the way we our commitment to our user. So, we know how sacracy that trust is and it's all about privacy and what are the steps that we're Privacy ORG could protected for users. What is it that we're looking at to protect content and content moderations? Google now reaches more than half CARDINAL the people on the planet. Why shouldn't we view Google as a monopoly? So, you know, I go back to the earliest days when Google, Back in 1998 DATE and in those earliest days DATE , when I heard about this like eight CARDINAL search engine, the questions, why do you actually need it? And back at work and Stanley PERSON , it's working with our research channel. She actually had her team put up white pages all around the conference room Was doing this comparison well provided the most Result NORP most rapidly and all of a sudden you could see the wind at this google thing actually maybe we do need something new and that's been the ethos at Google since inception is just continue to innovate to make this eight never better experience for users and so if we can if we can deliver on that which is what drives people here It's really opening the world for for so many people. So, that's that's the intent. Facebook and Twitter PERSON are exploring digital currency. Is your thought on the crypto market and is there a play for Google So we look at it it there's nothing to to comment on now I think we're much more interested in blockchain in the underlying technology and the implications for the business and For the way we can support our cloud customers. So, certainly a lot of effort there. There's considerable chatter in the crypto universe that web three CARDINAL in the blockchain could the power of Facebook and Google and more. What do you think about the next frontier of the internet? At this point, I think there are a lot of different things ahead of us that are actually stunningly exciting that enable us to actually continue to address Needs and and requirements like I look at for example Something like health where I think blockchain will be very valuable when you think about health and health records. They're also a whole host of other areas where the data analytics that we provide are absolutely critical. Should we make excuses to our employer? Should we tell her like, if I have to head to a parent to teach her conference or take a kid to the doctor, do I tell my boss? You don't tell your boss. You've gotta get over the guilt.

You survived breast cancer. Twice. What was your biggest fear at that time and how did you overcome it? Well, the biggest fear was I wouldn't make it I remember when some someone had some interview while I was going through chemo said where do you wanna be in 5 years DATE and I froze cuz And I learned a couple of really important things Given breakthroughs in medical technology I learned to love the word manageable. These, this journey does become manageable, not for all cancers, but for many more cancers. And that gave me a lot of confidence talking with other survivors about it is manageable, get the best care, Just plow through it. I was just very grateful and grateful for all of the investments people have made over the years DATE . But for anybody out there and I think everybody sadly will be touched by cancer other than themselves or someone they know and love. Many of these cancers are manageable and just go at it with gust. So, that's what I did. You're a mom of three CARDINAL And I find that especially remarkable because I also have three sons You manage that over the course of this, you know, incredible career. How do you find that right mix of focus and free time to spend time with your family and doing the things that you love So my kids my kids give me energy. They're remarkable and I think one of the important things for me is this notion that you do have to have a mix. It's not about trying to find balance. The physics of which is really challenging. I think when people try for balance, they always feel their feeling on Cuz something's out of whack. Metaphor GPE that life is like a kaleidoscope and you need to have different shaped pieces of glass and different color and sometimes one is larger than the other and what's beautiful about life is when it's constantly moving around and so That metaphor has actually been sort of an anchoring principle. Other is you have to put the kids first so like they they know that I'm I'm there you know when they need always and And I think that just making sure that you're setting the boundaries the way you need to. I would say it's much easier today DATE than when I was growing up in banking. You know, we have a cubicle. There was a there was a computer room. You were anchored to the computer room. One CARDINAL of the many beautiful things about going through Evolution in work is understanding that hybrid works. So how do we get rid of mom guilt? In this new work world I want to shake my mom guilt how Okay. So, even when you feel it, just say, you know what? It's an investment in my career because I can stay in this longer and be operating at a higher level. If I'm really getting the stimulus from all parts of my life. So You've gotta drop the mom guilt and when on the other side mom guilt with kids I think they get it I think they understand what we're doing and you know I'll never forget during the financial crisis at one CARDINAL point I was working on AIG ORG we went around the clock I came home to shower that one like right as we were landing AIG ORG and my three CARDINAL kids At each written me a yellow sticky note with a message on it and one of them was you know they it the essence of which was I get why you're doing this and it and they saw it as The right thing for the country. I don't need to over dramatize what it was but that's what it felt like at the time and that level of approach.

You're doing this and it and they saw it as The right thing for the country. I don't need to over dramatize what it was but that's what it felt like at the time. In that level of pride, I still have those three CARDINAL stickies right by my bedside because It. I get the mom guilt. I wish there were certain elements I could could have done differently but I also see the relationship we have and they understand what it means to actually be engaged in society and doing something you care about. No mom guilt. No mom guilt. Thank Not allowed. Should we make excuses to our employers? Should we tell her like, if I have to head to a parent, teacher conference or take a kid to the doctor? Do I tell my boss? You don't tell your boss. You don't tell your boss. Guys don't tell their boss. Do not tell your boss you've gotta get over the guilt. The only way to move on from it is realize I'm a professional I do things when I when I can and it makes sense and I get it all done. I just do it on my own timeline. And I actually had a woman who emailed me So I'm gonna email you. Five CARDINAL step journey Do not tell your boss. Tell your boss, you know what? I need to do certain things for myself and I, it's, I'm getting, I've, I feel guilty, doing it but I get everything done. There's no question. You are so beyond having to check in with people. Yeah. Well, thank you. Do not. We're in the middle of this so-called great resignation and people are reflecting What's your advice People in this you know big evolution You know, a huge choices ahead. Well, I think you framed it really well. I don't think it's the great resignation. I think it's the great reshuffle and people are reflecting on what do they want and how do they wanna work and how do they wanna live their lives? So, I think for all of us thinking about what is that mean for our institutions? It is about evolving the way we We work the way we interact the expectations that we have to say but I grew up in a cubicle on the 26th ORDINAL floor of a sky rise doesn't work And so what should we do as leaders and I think that our this generation appropriately and it's very exciting More from all of us and so it's not just in how we work but it is in what we do and I think all elements of what's the mission are you delivering on the mission is really important. Okay, so if you rapid fire questions, someone you'd love Dinner PERSON with. Wow I'd love to see my parents because they passed away and over years ago DATE . Favorite family ritual? Do this crazy thing that we've done for years DATE which is everybody gets to pick where we travel We come up with the five CARDINAL the five CARDINAL different locations and then we all vote and then we get the grid and that's where we go. What's your favorite getaway? Probably I would say maybe Iceland GPE was the best. That's an amazing one. New York GPE or California GPE ? Ooh Energy from New York GPE so I'm not It's like my I don't pick amongst children. So, in closing, Google ORG 's a massive company, multiple divisions, many bets. Where are you spending most of your time now? I was spending most of my time on your very important question about capital allocation because if it really goes to this core point Intensity I often say I don't wanna get to the two CARDINAL yard line but not score so you need to make sure you're investing with the right intensity to support long term growth that's the most important area where I would say I The back of my time and then of course you have to prioritize in order to recycle to support those options what kind of discussions are you having with Larry PERSON and Sergey PERSON now about this next phase of Google ORG . So, when they need the announcement about the role of change, they really, they were very serious about moving to this board role and they've been their amazing board members. Sandars of course Relies on them and for council where wherever, whenever, but most of the interaction is really around. What are we doing at the board level? It's been great. And you have your freedom to allocate capital as you like. I work closely. And

What are we doing at the board level? It's been great. And you have your freedom to allocate capital as you like. I work closely. Philip and Thomas and yes, we we work as a great team. So, where what's the vision for google then? 10 years from now DATE ? You know it's fascinating to was I think I had the same reaction you did when I heard Cinder say search is the biggest moonshot and I think that continuing to find ways to be helpful to users to solve what they need wear so many people are coming online and it you know is video gonna be the first ORDINAL the way they understand it's gonna be You know, search is gonna be a different type of experience so much of it's gonna be about voice, first ORDINAL , and language translation. So, there's gonna, it's gonna continue to evolve. I want about for you personally, like, where will you, you know, It's been so amazing to hear about your journey and I'm just curious about your personal growth like What you feel you've accomplished in the last, you know, since you've been here and what you hope to I find that that the Opportunity ORG to try new things and to invest in new things and as we think about what is that mean for each one of our areas there's I think that intellectual curiosity keeps you young and I think that continuing to learn is like your brain is like silly putty getting pulled in a lot of directions so to me it's He was learning. Report, thank you so much for joining us. It's been wonderful. It's been great to have you on campus. Come back anytime. Thank you so much for doing this. Thanks for doing that. Sorry. Not at all. You're doing well? How about you come in I have to ask is your son still mining ethereum? He and I literally were talking about it last night TIME . He's like, dad, you are the one who made me give up on it. I'm like, no, no, I didn't but yeah, the thing that's good about this is I think it excites a whole new generation about technology which is which is good. Appreciate you. Well, thank you for doing it and thank you for coming down to do it. I'm ready to go From Google headquarters in Mt. View California FAC this is Bloombrook Studio PERSON one CARDINAL point Alphabet NORP CEO Sundar Pachai LOC . Had almost no access to a computer until college but just years later DATE found himself rising through the ranks of the world's largest search engine. In 2015 DATE it was pachai that google co founders Larry Page PERSON and Sergey Brin PERSON chose to run google and later alphabet Two 1 trillion dollars MONEY it's one CARDINAL of the most.

And later alphabet now valued it more than two 1 trillion dollars CARDINAL it's one of the most powerful companies on the planet Cinder PERSON , it's great to be with you today DATE . Thanks for doing this. Great to be here in person. Google just hit a two 1 trillion dollars MONEY market Alphabet ORG . I should say. Where is the next one 1 trillion dollars MONEY gonna come from? You know, all these fell you know Your market cap evaluation is an effect of the value you provide and I feel fortunate our mission is timeless You know there is more need to organise information than ever I still feel search is our biggest moonshot as a company. You know people will want radically more conversational experiences They will want what we call multi model experiences. They may speak to search. They may look at something and ask what what the information is. Being able to adapt to all that and evolve search will continue to be the biggest opportunity. We are so excited about Beat YouTube ORG cloud are are hardware products Google Play PRODUCT so we're building a diverset of businesses Underlaying all of it is the investments we are making in AI GPE invested 100 1 billion dollars MONEY in RND ORG in the past 5 years DATE . And so applying a eye in a deep way is probably where we will create the biggest opportunity ahead. Microsoft ORG is making some big acquisitions Apples anti ad tracking technology is shaking up the industry What do you make of these competitive moves? They're on the right side of history Are they? I look at the fact that There are three 1 billion QUANTITY people who have access to knowledge of their fingertips. I look at the opportunity we provide. I look at the skills people are learning through YouTube ORG . You know, I feel it everywhere when I go talk to people and and providing access to information and knowledge. I think we'll end up being on the right side of history as well. Your predecessor Eric Schmidt PERSON told me that he feels the latest Facebook revelations are disturbing. Google also has access to massive amount Why should half CARDINAL the world's population more than half CARDINAL the world's Trust google to do the right thing. We are trying to do more with less data One CARDINAL of the biggest changes we made was making auto delete the default setting for new user signing in and now over to uses have their data continuously being deleted. Look we rely on trust for people you know everyday when people come to Google You know they place their trust in us in vulnerable moments maybe a health issue on which they are trying to understand. Yeah there's no more important responsibility we have than doing right by that trust. You know when when we provide Gmail PERSON to journalist and realize that there accounts may be under a pack by by an authority in government. I mean that's what you know motivates us to make sure be privacy be security beat trust we are doing the right thing Important role to play here I think privacy regulation is important in areas like AI regulation will be important and so I think you know those will be part of the answers as well Hey facebook fall out that Instagram NORP can be toxic to teens for example Raise PERSON more or new concerns for you about the impact of technology, tech addiction, algorithms, YouTube ORG event, on our children, and their development and their mental health. I mean, your parent, and you also have a lot of power over how this plays out. You know, I mean, like you, you know, bringing kids up in this modern digital world or something, I think all parents are anxious about, right? So, I think, you know, it's Spotify GPE , a few years ago DATE when in YouTube ORG , you know, we we were exposed to a set of concerns. You know, we invested, it became our number one CARDINAL priority to work hard at it. The reason YouTube ORG invested so much in developing YouTube ORG kids as a safe destination for young children so on. Technology is gonna play a big role in helping give children the next wave of opportunities as well. So, the answer is to develop it responsibly. We have changed our balance in these areas and saying, we think about content responsibility first ORDINAL . I'm

Answer is to develop it responsibly. We have changed our balance in these areas and saying we think about content responsibility first ORDINAL . And then the pace of development her new features in in areas like YouTube ORG and so that's how we You for a while. Facebook and Microsoft ORG are all in on the Metaverse. What do you think about the metaverse what's google ORG 's metaphors strategy? It's always been obvious to me that computing over time will adapt to people and people adapting to computers. You know, you won't always interact with computer in a black rectangle in front of you. So just like you speak to people you see and interact computers will become more immersive they'll be there when you need it to be so Been excited about the future of Immersive ORG computing ambient computing AR and we are in Yo Meadow PERSON versus I think it means different things to different people. The way I think about it is evolving computing. In a immersive way with augmented reality. As part of that there will be many experiences. Some of which will be immersive Interactive virtual worlds you know We're just a matter of concept and you know, but I think this doesn't belong to any company, right? I mean, this is the evolution of And you know, the web, the internet, all of it will continue to evolve. Google was famous for its campuses where you could go and never leave. You had everything you ever wanted. Now, you've said they can be flexible. They can work from home. They can work at the office. They can be They can work remotely permanently perhaps Are you committed to really letting them do this forever? If so how does that change the future of work and society? Look where we we really embraced the fact that the future is going to be flexible. A google we've always tried to give you know a agency to our employees. But we do realize the importance of bringing people together Creatively community and collaboration that comes with it So the balance we are striking is is the notion of three two CARDINAL . And but we are giving the strength of our company is we are more locations than most of the companies. So, we're giving people choice to move anywhere in the world. 4 weeks DATE taken work from anywhere. We were not accommodate 20% PERCENT of our workforce to be remote over time. So we're gonna embrace that flexibility Forever GPE . Forever, yeah, and you know How many to do it? All it forces us to design better products Since people use Google Workspace to run their companies having gives us a chance to innovate and bring all that out. You know I think that is so much value in giving people more flexibility between their personal and professional lives and I think it will lead to people being happier and I think companies can be successful in that model and so we are trying to get the best of both worlds but embrace the flexibility and and And and see where where we go. How confident are you that when you look back you'll be able to say google did enough to help save We are putting so much energy and resource into it.

You grew up in India GPE , you lived through droughts, water was scarce. How has that experience shaped your feelings about the urgency of stopping climate change? You know, I grew up in Chennai GPE , India GPE and a big part of my childhood was You know, really pretty severe water scarcity. You know, we would get water trapped in. For the streets and stand in lines and carry a few buckets of water home. There was no running water for many years DATE . Ehm you know but fast forward a few years ago DATE you know Chennai had one in 100 year DATE flood you know which was Very extremely well Kinda GPE drove home. Dad PERSON combined with a few years ago DATE waking up to the orange skies here in the area. Seeing the look of concern on my children's faces and having to explain it you know all kind of drove home in a deeply personal way So I think it's the most defining issue we all face and And you know definitely something Motivated on working towards I remember waking up to those orange skies too and having to have that same conversation with my kids do you think the commitments at Cop 26 CARDINAL went far enough? You know, encouraged by many things. You know, we have to tip our hat to the people who are working super hard The issues and the trade offs Genuinely difficult, you know, you have to Keep the economy scrolling. You know, really matters and but at the same time, it's a pretty severe urgent issue. Some may increase by the progress. I think it builds on the Paris GPE agreement so I can see the forward progress. There is the deep anxiety that he told me not be enough But you know we have to be optimistic and keep pushing Google ORG has set some aggressive targets to run entirely on clean energy to be the first ORDINAL tech giant to do so 24 hours TIME a day How confident are you that when you look back on this time let's say a decade from now DATE you'll be able to say google did enough to help save the We are putting so much energy and resource into it. Always been kind of a founding value for us. We've been carbon neutral since 2007 DATE . Have you been matching our energy conception with renewable energy over the past few years DATE ? So this, you know, we are not pushing. It's a moonshot to be 24/7/ carbon free. That means every search you do, every email you send, that we can do it carbon free. We were at 61% PERCENT in 2019 DATE . The number is now 67% PERCENT We have set our goals to be 100% PERCENT by 2030 DATE And to do it globally that means we have to solve new things which we haven't done before. When done solar alone won't be enough. We just started geothermal in Nevada GPE . We will be investing in newer technology including carbon capture etcetera over time. So that's what excites me. Technology company at heart. So, There are many answers to this problem. Some of it is that we are going to have to innovate our way out of it. And you know we wanna push as hard as possible in doing that. Our Bloomberg New Economy Forum is happening this year DATE in Singapore GPE and the Asia Pacific region LOC is one of Fastest ORG growing internet economies on the planet. Where do you see the most room, the most opportunity for google to grow there? You know it's such AA Time frame you know I'm glad you're focused on the region it's the most vibrant region we see it's our 20th year DATE since we opened our office in Tokyo GPE it was the first ORDINAL office The Bay Area LOC You have two and a half DATE one 1 billion CARDINAL people on the internet. Any areas in which they are they're leap frogging trans which are here and embracing the future digital payments is a great example. So many of our products originated from APA ORG .

Leave frogging transwitch are here and embracing the future digital payments is a great example. So many of our products originated from Apac Google Maps Google ORG page A lot of the our journey to bring computing to more people is is playing out in Asia LOC as well. I am excited about also the work we are doing through cloud because the There are rapidly transforming themselves digitally. So, a chance to provide that is something. Very exciting for us. Super dynamic region. I feel like we are learning as Google being in the region and so I think it'll transform the first 10 years DATE I would have said we took products here and brought a tape pack Last few years DATE we are beginning to build things there and some of our future global products will be a pack first ORDINAL . And rest of the world later. Can't talk about eight CARDINAL pack without talking about China GPE and you're facing stiff competition from Chinese NORP tech giants there and beyond what should US GPE policy makers know about competing with China GPE You know there's a Lot of conversations about US GPE and China GPE . The competition is fierce. When you look at areas like AI GPE and quantum ORG computing where we are investing a lot. You know the Chinese NORP companies are neck to neck What I I think about you know I was encouraged by the news coming out of Glasgow PERSON about the China GPE agreement on planet. To me while we talk about all the all the areas where we are competing Some of the biggest areas which are a common challenges for all of humanity. The pandemic was one CARDINAL AI GPE and AI GPE safety over time will be shared one CARDINAL obviously sustainably is So I think these are all areas in which the countries can come together and so I think that's the way by which we think about You know when we compete on the internet and there may be different versions of how the internet plays out so I see opportunities both sides. What are the chances that Google search will ever come back to China GPE ? Or that Google cloud? Would ever come to China GPE ? Yeah, today we don't provide most of our signed in services in China GPE and I don't see that changing. But you know, there are Ways as I said AI or sustainability I didn't know the opportunities for us to work together. We will support multinational companies which are presents everywhere and so maybe there are opportunities Work that way as well. Is advancing at an astonishing rate and it is hard to understand sometimes what this really means in concrete terms how will our lives look different? Let's say 10 years from now DATE as a result of You know, done correctly, you know In many ways it's going to be helpful to you Take it for granted Today DATE for example in India GPE . Or one third CARDINAL of the queries on many phones come through voice. People take for granted you can do it. So over time you'll expect to speak and be able to understand any language on in the world. And you know, those are all ways. It's gonna make it better. You may go to a doctor's office. Ehm go through a scan and the system may be prioritizing for the radiologist. So that they don't miss some important things. Maybe giving them a second ORDINAL opinion. You know so these are all ways in which you do seamlessly start playing a role and I think we'll We'll see if it's a path. Correctly and there are concerns There are fears that AI ORG will replic The worst of society even under googles on roof from your own researchers. Scares you most about AI GPE . What keeps you up at night TIME ? Founding we are working on as humanity And anytime you're developing technology, there is a dual site to it. Being a journey of humanities, harnessing The benefits while minimizing the downsides The good thing with AI ORG is both going to take time. I think I've seen more focus on the downsides early on than most of the technology we've developed. So, in some ways, I'm encouraged by how much concern there is. And you're right even within Google You know, you know, people think about it deeply. We publish a lot of research that are I think it's more important that there are outside academic institution, governments, nonprofits, looking at this issue as well. So, I think it's It it'll be

There are I think it's more important that there are outside academic institution, governments, nonprofits, looking at this issue as well. So, I think it's It it'll it'll be an issue which you'll have a lot of attention which gives me lot of comfort as well. You said you'd pick up some new hobbies in the pandemic. What did you start? Yeah, cooking pizza, just letting you cook which I was never good at. I've got a little bit better. You have presided over Google through massive social movements that reverberated in and outside the company. What have you learned as CEO since the walkout? For me, you know, It was a moment I think it changed the company for the better you know we've always been committed it gave us an insight on what more we could do we undertook deep commitments The biggest you know overall and diversity and inclusion I think If your commented and you actually put in the effort behind it. You can make a difference. Now you've stated clear goals. We're on track to meet this meet those goals. It forced us to think about new answers. So, for example You know tech companies used to talk about the pipeline problem. But you we are now going to places where the talent is we're working much harder So, going to Atlanta GPE , going to DC GPE , going to Chicago GPE , going to New York GPE . That's improving our diversity and representation at all levels. The war for talent is even more competitive now in this new world Elon Musk PERSON has said big tech is a place where talent goes to die. How do you respond to that? Okay I look at the fact that you know we are looking to hire 30 1000 CARDINAL people next year DATE I look at the impact we have on many people coming and working In the latest cutting edge things and many people come in, people leave Google ORG , we are proud of people who have left google that are, I think that are 2000 CARDINAL companies that have been started by Umi College Supers ORG . I'm equally proud of that, right? I think we are one CARDINAL part of a big big system You know I I think I think I'm proud of the role we play in bringing in people and the impact they have over time and outside world. Alright, that's most of the heavy stuff out of the way. We're gonna do some rapid fire just to get to know you a little bit better. You said you'd pick up some new hobbies in the Pandemic. What did you start Hi you know Pizza. We are cooking pizza. Just letting the cook which I was never good at. I've got an little bit better. Cricket or soccer slash football Wow stop bored please don't make it use Square game or Ted Lasso PERSON .

Soccer slash football. Wow, stuff. Please don't make it too Square game or Ted Lasso PERSON ? I watched both Much more calm and so I'd rather take Teblaso over school games any day. I know you're a voricious reader What's the last good book that you read? I've been on a podcast bench so a lot more podcasts than books nowadays. Videos ORG you watch on YouTube ORG with your kids Lot of music videos, music videos, this whole notion were creators are watching other things and commenting on it. It's a really into and I've kind of gotten used to it now. So, you know, watching another games, it's about some phenomenon. Screen time policy that's worked for you as a parent. You know I've kind of given agency to my kids. The only thing I tell them is that I can look at their digital well being. Once in a while with them. And so how do you do that? I asked him to show it to me and they show it on their phone. So, You know, so that that's pretty much the only thing. So, beyond that you know, it's agency and and you know, talking to them about it and making sure we are spending time doing other things. And make sure they develop That's right. Metaverse or real world Done correctly. You know, you should you should feel it feel the need to make a choice. You know, you always want to be present in the real world. And when you feel the need to do something, You wanna do that but you know I do think presents and The realness of the real world will end up mapping for humans Long time. Do you own any crypto? I wish I I did I doubled in it but you know in and out. In and out okay. How many times a week do you talk to them You know I talked to them regularly You know, it it kind of absent flows. You know, I'm so, there are times we get excited about something and we spend a lot of time talking it through but it depends on You know, what would I need? A piece of advice you wish you had in your 20s? Piece of advice you wish you had in your 40s DATE . Our 20s would be you know being patient you know I think when you know young you're very impatient which is a great thing. But sometimes you do amazing things by slowing down and being really focused and doing it over a period of time. And so I would advice the you know the younger version of me to be more patient. Maybe at 40 I would say you know when I look at climbing. You know I want $one for be impatient. So you know I feel like when there's an urgency to at something and in the world needs to be impatient. So that's not why I would give to a older version of me. Personally wrestle with the decisions that you have to make. And how much longer do you see yourself being the CEO of alphabet not just alphabet but also Google Yeah Look on the first ORDINAL one there are moments we all have to make tough decisions and you know and some decisions may on me and But I it's a privilege to do it. I have very good people helping me think things through. So, adding a combination makes it all you know, fine. On a second ORDINAL thing I I'm Hey I'm so energized by the things we need to do you know I I didn't have much access to computing growing up it changed my life a lot the one CARDINAL laptop per child goal really motivated me to come into technology and and when I look at last week DATE as launching a affordable smartphone in India GPE The chance to bring the next one 1 billion DATE users in Asia LOC and in Africa LOC online. That gives me a lot of energy. We'll be watching from afar. Thank you so much for joining us. Thank you. Wish to be here. However you get your new Blueberg PERSON radio. Hey Facebook

Jeff Bezos PERSON shocked the world when he stepped down his EO ORG of amazon let's shocking what's his choice for successor Multi PERSON one 1 billion dollars MONEY cloud business Amazon ORG web services a moonshot that help transform Amazon ORG into not just e-commerce but enterprise juggernaut Jassie then needed to find his own successor tapping a former colleague who helped grow AWS in its earlyest days DATE but had since left to run Seattle GPE software giant tap low His job to continue the reinvention of AWS ORG and in turn Amazon ORG . Joining me on this edition of Bloomberg Studio 100 ORG . New AWS CEO Adam Solipski PERSON You work for AWS for 11 years DATE and then went on to become CEO of Tablo ORG software in 2016 DATE then you get a call from Amazon ORG to come back and run AWS ORG as CEO Well I was having a one CARDINAL on one at at my prior company and my Apple ORG news alerts went off like everybody else has did and to Jeff Bezos PERSON has taken on a new role and Andy Jassie's PERSON taking The the CEO role of of Amazon ORG And of course Sandy PERSON and I worked shoulder to shoulder about 20 feet QUANTITY apart for 11 years DATE so of course I reached out and congratulated him and we started talking and you know the conversation turned into some of the And next thing I know little while later here I am back at Amazon ORG absolutely delighted and honored to be the CEO of AWS and helping to shepherd this this amazing business for our customers. In that process did you talk to Jeff PERSON as well? The idea of course was you know the AWS ORG business best and of course it's taken on the CEO role but yeah there was you know contact as you might expect with small handful of other people. So what did Andy PERSON tell you he wanted in the next chapter for AWS ORG ? Andy PERSON reminded me not that I need a reminder but that it has really still day one For AWS and for our customers it is still so early in this business and we shouldn't think that just because the business has grown rapidly or just because we're currently the leader in the in the cloud That it's anything close to mature. And so he really reminded me that we have to stay hungry, innovate as quickly as we ever have done in the past. You're into the job. Mm hmm. What changed while you were gone? That surprised you Why I think that so many more customers have have really adopted the clad and really decided that they're they're going all in. So, I mean it was a pretty decent size business when I left but it's really grown and the the customer base is really expanded and so now we have a very Relationships at the CEO level, the CIO ORG level, across every country, Industry, every use case, and we're regularly interacting with The most senior people at their client organizations. So, you were working at Real Networks? Yes. In the early 2000 DATE 's and I understand you were offered a job at AWS without even really knowing what it was. I guess AWS was in stealth mode. Well, it was very secret. So, it was it was it The company didn't wanna talk too much about it but of course, you know, we had to talk a certain amount about it. So, the call I got when something like we have this initiative to turn the guts of amazon inside out and expose it to other people. And it sounded intrigue you know that I confess I didn't fully understand what that was all about so I came in and started talking to Andy PERSON and few of the other senior leaders and eventually to Jeff PERSON and I I would have to say that you even by the time I took the job I I thought I'm I'm mostly understand what they're talking about and it sounds like a good idea and and I'm in but I also was like well you know we'll just have to see how it goes and and and you know Amazon ORG 's a big big place and so I think we've got a

But I also was like, well, you know, we'll just have to see how it goes and and and you know, Amazon ORG 's a big big place and so I think we got a lot of lot of intent to succeed here and that's the thing that impressed me was Amazon ORG really had the the desire and the intent and the belief that this could be a really good business. AWS comes Out of stealth mode and is the first ORDINAL to market with a cloud infrastructure service in 2006 DATE . How important was that first ORDINAL start? And and and do you think AWS ORG still has an advantage today DATE ? Because I think the the the time to market advantage that we had Probably, honestly, 5 to 7 years DATE . Start before other companies really started to take this seriously was an enormous frankly it was just one of the biggest things that happened to us in the early years DATE because at the beginning a lot of people didn't get it I would get asked a lot at 2006 DATE so what is this have to do with selling books And well, I didn't have to slide with kind of a pile of books on it and a question mark next to it and and the answer was it has nothing to do with selling books but the technology which enables us to sell books Being global being at a massive scale being secure being low cost being highly performed. All that technology has everything to do with offering these types of services externally. No AWS isn't a scrappy startup anymore and you do have big rivals even though AW Still the leader Microsoft ORG in Google ORG art. Big rivals. How do you make sure that being big doesn't slow you down? Oh, it's a great question because we we are currently the leader and yeah, I mean, depending on which being a third ORDINAL party, You're lucky we're probably a little bit more than twice as big as as as number two CARDINAL It's really important to continue to act as if you know we're in search and to be insurgence and not to start to act like incumbents and I like to talk about actually managing the business. We want our senior leaders to be managing product and managing customers. And I think as you get bigger and you put more and Layers into your company it's it's all too frequent the extreme managing You start managing ratios and percentages and growth and I think it's it's a real disease if you if you stray away from really focusing at a deep way on the product you're building and in a deep way on what your customers are telling you Are we trying to organize both with our structure as well as just with with our culture and what we choose to focus on. I'm really making sure that everybody is thinking about one or both of those two CARDINAL things. Product and customers. And if you keep even the most senior leaders engaged that level then all send you you maintain the urgency and you keep acting like an insurgent. We gotta feel that urge Every day DATE . So, keep acting like an insurgent. That's the motto. Absolutely. And and build a culture that allows you to. It's one CARDINAL thing to say it but it's easy to say it but it's much harder to put in place enabling mechanisms that enable you to do so. We focus a lot of effort on those mechanisms. Now, Think the cloud keeps getting bigger and that AWS ORG and Microsoft ORG and Google ORG just get bigger pieces of an ever expanding pie or at some point does it become a oh some game and that fight for market share becomes more brutal and more bloody. This is very large market segment and if you look at global IT spend it's it's in the trillions of dollars MONEY I've seen estimates like three 1 trillion dollars MONEY it doesn't really matter how many trillions it is it's very very large and we've always believe that this was too good a market segment opportunity for the really to only be one winner and sure enough if you've seen rob Competition emerge and and we all compete vigorously but it is the second ORDINAL is just growing so rapidly that I think really for us we believe that you know the winning business strategy for a long time to come and I would maintain forever is to folks not on the competitors but to focus maniaically on customers and wake up everyday Understanding ORG exactly what it is that they need us to build next and then Backwards from there. Back internally to how can we build those things? If we, if we do the best job at building the most quickly, the things that are most important for our customers, then, I'm really not worried about what the competitors would do. You worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you.

Worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you. You're gonna get me in trouble, aren't you? You worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you. You're gonna get me in trouble, aren't you? Where has Andy PERSON coming from New York GPE has this fascination I don't understand with that with New York GPE sports team so I've had to endure that for that for a lot of years New Yorkers NORP yeah so what are you gonna do oh dawg he's you know he's he's I think come come to adopt you know some of the Seattle GPE teams particularly the new hockey team the Can hear. As he should exactly. So how do you expect Andy PERSON will be different from Jeff PERSON or how has Andy PERSON already been different from Jeff PERSON What I think you know we're all different as leaders. I think it's all important that we it's it's important that we all bring our own stamp to it and and operate within ourselves. I don't think I would be very good Andy PERSON . I don't wanna presume but I would assume that Andy PERSON wouldn't be a great chef cuz you know Jeff PERSON , Jeff PERSON , Andy PERSON , Sandy, And I miss so I think that Andy PERSON was certainly bringing a great depth of of experience for me of US GPE which is you know one important part of the business and will having operated that business for so long and I expect that it'll also give him an opportunity though he was involved in other parts of Amazon ORG certainly For for a number of years DATE we'll be able to bring a fresh perspective to the whole company just as I hope to bring to AWS and I think that fresh perspective is is often helpful I think just the mirror act of change is is useful for for the business for customers from employees and just to shake things up a little bit so I I think just Fresh perspective. Will you be different from Andy PERSON Well I think that the the world around us is changing so so much that we're we're gonna have to be different. It doesn't matter what we did yesterday DATE and right after I joined we actually added two CARDINAL new leadership principles which is very exciting. One's around striving to be earth's best employer And the second ORDINAL around focusing on the fact that that success and scale bring broad responsibility and those are things about which I personally am very passionate and so I really personally look forward to digging in and helping the company to figure out what are those things that we have to figure out where can we innovate to to be earth's Employer and then also to figure out externally what can we do to to really be great citizens of our local communities to be great citizens of our national communities and to be a great citizens of

And then also to figure out externally what can we do to to really be great citizens of our local communities to be great citizens of our national communities and to be great citizens of of the global community and I'm I'm I care a lot about Things as a lot of other people do here but I plan to put a good amount of energy and time and focus and hopefully help Amazon ORG innovate all of those areas. How closely do you work with Andy PERSON day to day? Does he, you know, regularly weigh in on AWS decisions or not? He's he he's got AA pretty broad scope of things to worry about now so he he's got a pretty a pretty intense day job I believe so he's really focused across the company as you would expect him to be but Being said obviously AWS ORG remains an important part of Amazon ORG and so we touch base regularly but in person or you know via email just on the most important things going on in the business. Does Jeff PERSON ever weigh in on AWS ORG decisions? Yes, I mean really from the beginning. Jeff PERSON was involved at the very very beginning. It's some of the most fundamental decisions What does the detail page look like obviously over time The business crew and but at this Jeff PERSON was always you know available when we needed him and I certainly anticipate that it'll be the same going forward. So is he still available now? Priorities are. Sure. Well, I'll let let Jeff speak to Zone priorities but but certainly Jeff PERSON has been available when for example we've Our our annual planning cycle as many companies have and it's been great to have have Jeff PERSON did you win on really in where we're heading for the next year DATE and beyond and to just make sure it's easy to get focused on the details of the business and it's it's great to have a multiple Can help you pick your eyes up a little bit. No, you joined AWS in the middle of a pandemic. You came back to AWS in the middle of a pandemic. That's hopefully moving into the rear view mirror. Maderna GPE is one CARDINAL of AWS ORG 's biggest customers. If it weren't for the cloud, if it weren't for AWS ORG , would we have had a vaccine as quickly as we did? I've gotta tell you mys but it's been an absolute privilege to for us to work with Maderna GPE because what they're doing obviously is literally lifesaving and they've been so innovative and so creative. So, Maderna GPE took a drug development process to get to the To a vaccine candidate. That process would typically have taken of 20 months DATE and doing that on AWS ORG and conjunction with all the the innovation on their side. Reduce that 20 months to 42 days DATE . 42 days DATE to get the the the vaccine Canada GPE the mRNA vaccine candidate for for COVID-19. Those Hey On on running multiple parts of modern on AWS ORG . So, if you look at the drug design part, they had their their drug design studio, running on AWS ORG , all the way to manufacturing, with of the new digitized manufacturing that they call their their digital manufacturing platform. So, it's really end to end and the ability to use Of amounts of resources and to pic the exact you know type of of service and capability for for for each part of the job and and and truly bring the full set of resources to bear. In addition to not having to focus on the idea and the infrastructure and the technology and rather letting you know Moderna PERSON focus on on the all important job of drug discover So, working in partnership it was just magnificent to to see what that accomplished. Since you joined AWS ORG , the number of long time AWFS leaders have moved on. To Microsoft ORG , to stripe, to tablet, does that concern you? Well, actually retention that has has been very good. If you let you mention The senior leaders if if you look at the the VP plus ranks the VP and above ranks at Amazon ORG Average 10 years DATE is over a decade DATE . Over 10 years DATE . So that's actually very very strong retention. So of course yeah you're always going to have some love of people coming and people going and at the end of the day that's actually healthy for the business. You want new perspectives to come in. Of course in the right proportion. Amazon ORG has opened an investigation after Employees supported a petition Claiming a culture of discrimination, harassment, bullying, and bias. What's the Of this. Are incredibly focused and I personally believe it's incredibly important to really have a

Meant bullying and bias what's the status of this What we are incredibly focused and I personally believe it's incredibly important to really have AAAA very diverse you know inclusive and equivalent And we're going to Sure that whatever it takes that we've got that. So, we believe that we're really doing a lot of things to to deliver on that A lot of innovative efforts around bringing a diverse workforce which we have to have both because we're gonna serve our customers best. They're diverse. We have to match that diversity and also just believe it's our responsibility and it's the right thing to do. Yeah, anytime there is any possibility that things are not something is knock on the way we To we're gonna investigate it thoroughly that's what we're in the middle of doing in this case and and we'll make sure that we're operating in a way that's consistent with our values and and that's that's always the only goal. If you could rewind to the early 2000 DATE 's the earliest days of of AWS ORG is there anything you would have done differently to Building inclusive culture to start with a more inclusive culture To make sure that it didn't become a you know Boys club. Why I I I don't think that's what we have. I think that we do have a really Exciting innovation led and inclusive culture And that being said, these are hard problems. You know, we, I think we've done lot but we we are nowhere close to where we need to be. We're gonna be restless and dissatisfied with our our progress on DE ORG and I just, as we are with every other part of our part of our business. Mark Zuckerberg PERSON is making a big bet on the Metaverse. How big do you think it's gonna be? Such an interesting sentence. The Metaverse PERSON is real. AWS ORG has the biggest trove of sensitive corporate data. In the world i'm curious how you think about the balance between data and privacy and you know freedom and civil liberties in the modern era. I mean there are governments. There are nation states around the world that want that information. Hackers and criminals want that information. Very clear to start with that Is security. We often say security is job oh. It was on the the the first page of our of our operating plan pretty much every year DATE . Every year DATE that I can remember. But what about when governments request that information? So. Subpoena that information. Sure. Well, Very clear that our customers data is their data. So, the data belongs to our customers. So, not everybody operates that way. We we are not going to look at customers data. We are not going to compete against our customers using their data. Is there data? Furthermore we have all sorts of architectural best practices that our customers should be and and are using for any sense of

Furthermore we have all sorts of architectural best practices that our customers should be and and are using for any sensitive data. And and so a lot of that really relies around encryption And so we've got a lot of different encryption capabilities so that any sensitive data and which could leak for any reason a beer to a government beer to a hacker beer to anyone else any form of of security breach that it's encrypted in useless to anybody else. Give them the the Encryption solutions that we that we provide. It's actually, you know, very doable and powerful for our customers to to safeguard their data that way. Mark Zuckerberg PERSON . Is AWS gonna have a role in the Metaverse PRODUCT ? I think idea but yes already has a big role on the Metaverse. So, I think the cloud enables the Metaver PERSON . So, if you, if you think about all of the computer capacity, all of the storage, all of the machine learning, which is in required to create, you know, compelling, a delightful end user experiences in Reverse. A lot of that is ready today DATE running on AWS ORG . So, if you take epic games for example. So, epic runs Fortnite, you know, massively popular game, 350 1 million QUANTITY users worldwide and epic runs almost everything on AWS from back end. Servers to the Athletics ORG and and everything in between so I think that's a great example of the of the netters at work and all that's happening today DATE on AWS ORG and we anticipate that's only gonna grow really rapidly in the future. How big do you think it's gonna be? It's such an interesting sentence. The Metaverse PERSON is real. It's virtual at the same time. I think that if if we continue to do do what we've always done which is to provide a technology platform that allows organizations to transform then these gaming and entertainment and social media and other other companies will be able to do what they do best which is to focus on innovating up a half CARDINAL of their end users and I That the Metaverse and many other areas will will will be rich with So this next conversation we'll have will happen in the spheres in the Metaverse that that Next ORG meet. Alright see you there now I know that climate change you know and stopping climate change and your data center foot A big passion of yours. How fast will Amazon ORG 's data centers get to carbon neutral Amazon ORG is already the largest purchaser of renewable energy in the world. And we're we intend to be 100% PERCENT renewable energy by the year 2025 DATE . We'd originally said 2030 DATE . We actually accelerated that by 5 years to 2025 DATE . That's part of our our broader climate pledge that Amazon ORG created and to which we've now gotten 200 CARDINAL other organizations to sign on to And the the climate pledges to be that nets are a carbon by 2040 10 years DATE ahead of the the Paris Accord ORG target. So, we we know how to do some of that, other part are gonna require invention but we really look forward to it and I think it's it's it's it's one of the most Things we can do for that for our generation. Amazon ORG counts some of the biggest oil and gas producers as it's customers. Isn't that a contradiction? Should you be kicking them off your platforms? Those customers are trying to get to sustainable business models which rely on on a new energy sources and So many of those customers are figuring out how do they get to win how do they get to solar how do they get into batteries New business models relying on renewable energy and I think rather than abandoning them and having them maybe dig in more on on fossil fuels. If we can enable them to to move faster, to be more innovative, and to be more agile and figuring out new business models, new tactical solutions, experi Failing fast and moving on to the next next idea then the whole world will get to to the renewal binergy solutions that we need. It'll be the first ORDINAL time that Andy Jessie PERSON is not giving the keynote. You will be Give us a preview what can we expect to hear? Exciting announcements. So, I I think across our service portfolio, you'll see that. We have a lot of exciting partner announcements.

Back to here. Exciting announcements. So, I I think across our service portfolio, you'll see that. We have a lot of exciting partner announcements with partner econom PERSON still remains to this day DATE . So important to what AWS ORG is doing and we have some great announcements lined up for that. And then I I think people are gonna wanna see that we're making it And easier for them to consume the cloud and to work with AWS ORG and so we're gonna continue to in addition to building more powerful basic capabilities. We're gonna continue to make it easier and easier in a variety of ways to interact with AWS ORG . Adam Salivski PERSON , CEO of AWS ORG , thank you so much for joining us. To deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials What do you want to know today Ask a question or visit search go to find answers now. Alright, so here we are one of the elephants. Since this very first YouTube ORG video was uploaded 16 years ago DATE , the world's most popular video network has exploded to more than two 1 billion QUANTITY users in the farthest corners of the planet. Now, raking in billions of dollars MONEY every year. Pop culture. And kid culture. Amplifying some of the brightest and sometimes darkest traits in all of us while YouTube ORG has elevated a generation of creators and educated and entertained generations of viewers it's fought misinformation terrorism racism and violence many clicks along the way lately YouTube ORG 's biggest battles are Misinformation ORG and keeping the platform safe for kids and teens on this edition of Bloombrook Studio ORG 100 CARDINAL . We rewind to talk about where YouTube ORG has been and fast forward to where it's going next with one of the Susan Wijitski PERSON . It's been 5 years DATE since we last talked On camera. Yes. And we have a new president. We are weathering a pandemic. The most watched video on YouTube ORG is Baby ORG shark. So a lot's changed since 2016 DATE How do you feel about YouTube 2021 versus I feel good about it. It's definitely been a while.

Since 2016 DATE How do you feel about YouTube 2021 versus I feel good about it. It's definitely been a while and in technology, things move so quickly. So, a lot of things have changed since 2016 CARDINAL Responsibility And that's been a really big focus for us. And it would weather through a pandemic and a lot of hard challenges but overall I'm feeling really good. You've been a google for 20 plus years DATE going all the way back to Larry PERSON and Sergey PERSON . In the garage, you've been the CEO of YouTube ORG for seven plus years DATE . How has Your job changed in that time. Since I joined being the CEO of YouTube ORG , I would say one of the biggest things that has changed certainly has just been maybe the recognition of the importance of digital video. So, when I first ORDINAL joined, actually a lot of people would say, oh, like, why did you join? I was running ads beforehand and that was that's been the main way Google generates revenue and so a lot of people said like why did you leave that and go to YouTube ORG but I always believed in digital video Believe that now we see that the world also believes we've seen a lot of adoption of digital video and the benefits of that can have. You've championed this diversification strategy at YouTube ORG since you started. What's working and what's not working? Well, our main way of generating revenue is from advertising. But we also have really grown our subscription revenue Many different reasons. So, that has enabled our users to have experience where they can have music, YouTube ORG music, and premium. We just announced the 50 1 million QUANTITY Example generate revenue with channel subscriptions they may sell merchandise We also have things like digital goods, so like super chat, super thanks, and so with basically diversify the number of ways that that are ecosystem is generating revenue. The original tagline for YouTube ORG was broadcaster yourself. Concept has exploded. You have ordinary people in the spotlight. When they grow up, they want to be an influencer. They want to be a YouTube ORG star or a YouTube ORG What do you see as the future of the creator economy I see a lot of possibility with the creator economy and because I see that many people have a lot of interest and they have a lot to offer Beforehand NORP they went to been able to have With the world and so there's so many people depending upon what their talent or their interest is whether it's a sport or cooking or gaming or hairstyles that people have come out and really been able to share that and create a lot of jobs. So, we actually see like our we actually saw 35% PERCENT increase in the number of creators that are generating six CARDINAL figure income out of YouTube ORG . And in the last year DATE and so that's just an example of like how the creator economy is continuing to grow. Well, and for years DATE , YouTube ORG was the only company that actually paid Creators but now a lot of companies are paying creators in Facebook and Instagram NORP snap TikTok You see that Competition playing out who wins Well, it is a competitive landscape and in general, I'm competition's good. It makes everyone work harder and that's good. I mean we look at creators and we say they're gonna come to us if we do the best job and creators come to us looking basically for fame and fortune like how can I I have a skill or I have a talent something I wanna share with the world like and YouTube ORG can help that be no it can help them provide that Really hard to make sure that we deliver that for our creators. A year ago DATE during the Black Lives Matter EVENT protest, YouTube ORG made big commitments to black creators in particular. What's been the progress there and The potential for YouTube ORG to be used as a tool for social justice. Also we'd made an announcement that we were gonna do 100 1 million MONEY

And Youtube ORG the potential for YouTube ORG to be used as a tool for social justice Also we've made an announcement that we are gonna do 100 1 million dollars MONEY black voices fund and so we're continuing to develop content there but one of the others and and I I think there'll be a there's been a lot of great content that's come out and we'll certainly see more. But you know you because YouTube ORG doesn't have any gatekeepers like you can just post and Become a creator we have seen a lot of people of different backgrounds and underrepresented backgrounds become creators and have audiences we never really measured it beforehand cuz we didn't have a way and so one of the things that we've done is within with enabled creators to now tell us what backgrounds they they So we can have a better understanding of how they're doing on our pop farm. Let's talk about YouTube ORG shorts. It seems to be a top priority. Yeah. We all know that TikTok ORG is on the rise. How important are you to shorts to the platform to the company? So YouTube ORG for it's very important. We see that creators and users wanna watch Uploaded to YouTube me at the zoo with an 18 second TIME video so is it a short form video Two CARDINAL more is just enabling those to be found and then a lot of the creation tools and so bringing a lot more mobile creation is really important for us going forward. Did you notice that viewing time was being lost to ticktock? Did you see that trend? And do you see TikTok ORG as a sort of existential threat? Many competitors in this space. Where's our opportunity? We're always looking around, seeing what our competitors are doing, and if they're doing something that we think would be good for our users and our creators, we're also gonna look at how we can improve our our own economy, create our economy, and what's good for our users. I think a lot of people, you know, we talk about vaccine hesitancy and they blame social media. They say YouTube ORG 's not doing enough. One CARDINAL of the big things for us is to continue to work with public health experts to get their messages across. Mama is tired. You have to feed your creativity. Don't this tree house. At this point YouTube ORG has become a hub for discovery for Curiosities, right? That comes with a lot of inspiration but also with misinform When it comes to vaccines, vaccine hesitancy, videos that cause a public health risk Where do you wanna see YouTube ORG do better? We've taken responsibility

When it comes to vaccines vaccine hesitancy videos that cause a public health risk Where do you wanna see YouTube ORG do better? We've taken responsibility So first ORDINAL of all we wanna make sure that if there's information that violates our policies we came up with 10 CARDINAL different palsies around COVID then if that's a violation of policies then that's something that we'll remove. We removed over a one 1 million QUANTITY videos associated with COVID but we also wanna make sure that we're rais Information that we think would be that will come from trusted and authoritative sources and we've really been able to do that. I think a lot of people, you know, we talk about vaccine hesitancy and they blame social media. They say YouTube ORG 's not doing enough. You know, how do you respond to that? Yeah, I mean, I think, well, first ORDINAL of all, we're always learning. I just, just to be fair, like we're always thinking How can we do better? We're looking at the feedback and Public health experts. Across the board and you know, I think one of the big things for us is to continue to work with public health experts, to understand, you know, what are the ways that we can partner with them to get their messages across. And I really believe that that is something that's really changed is the the is The evolution of bringing Musicians ORG , experts talking about public health. We never would have seen that before the pandemic. How much do you internalize the criticism of of YouTube ORG 's content? Do you take it personally and and and how does that influence the decisions that you make us to eat? I wanna be doing the right thing and I I care about that. I The next generation and by by everyone today and so I really have put a lot of time and effort to make sure that we are acting responsibly and there's That we think could lead to some kind of real world harm. And so I'll make sure I think whenever you're in a position like that there's gonna be a lot of criticism Our goal is just to continue to you know talk to experts and evolve. And how do you make decisions in those tough moments? Where it's a tough call like how much of it is making a decision or leading by consensus and how much does it come down to you? The goal is that when we have tough decisions they're not we're not they are like improvising in some way. Is it a violation or not a violation and if it seems like there's some set of issues with the that we have in the platform we're gonna go back to experts and then reevaluate is it should we be making changes to the our policies YouTube ORG helped keep a Not children, connected, educated, entertained, distracted, through the pandemic. What have you learned from that experience and what do you see as the potential future of YouTube ORG as a tool for learning? As a tool in schools When I meet people and they find out them to see of YouTube ORG almost always they tell me about something they learned on YouTube ORG or someone that they're something they're family member alert so I see that as being a very significant part of YouTube ORG We had people who had to also just learn a lot of skills that they hadn't learn beforehand but probably the biggest thing that we also learned was just and that I release I was in need for us to continue to work with educational institutions And the need for us to be able to integrate with some of the learning tools that the kids are all using because they are using YouTube ORG and there's a lot more that we can do to really help educators have YouTube ORG be a key part of the Curriculum ORG . My kids are on YouTube ORG a lot and sometimes more than I want them to be and sometimes it's super productive and they're learning something cool and sometimes it's not productive at all. Innovating to make the time that kids spend on YouTube Valuable PRODUCT and of course safe. To me as a parent to make sure that we're giving parents options about how what they want their kids to see and that's one of the reasons that pretty much as soon as I got to YouTube ORG , we started working on YouTube ORG kids. Which is a separate app, which is important for kids, in terms of how we can control the quality, and we can give parents a lot more control.

Youtube, we started working on YouTube ORG kids. Which is a separate app, which is important for kids, in terms of how we can control the quality, and we can give parents a lot more control What kind of content is appropriate for them and their family and you know there are many other things like we actually just came out with a supervised experience for twins because twins was one of the age groups that was actually hardest they they usually don't wanna be on the kids app but they're not 13 CARDINAL to be on the Came out with. The Wall St Journal ORG has been doing some in-depth reporting on Facebook. You know, the report is that Facebook knew that Instagram ORG was toxic for teen girls and didn't do anything Does YouTube ORG look at the impact it has on on team users the influence that my Avon PERSON on someone's body image or self esteem personal I think it's a it's a very important topic and We we do have a panel of experts that we work with to be able to help us understand what are the different ways that our product could be used or whether how do we face some of these challenging issues to make sure that we're getting the best advice We certainly do see for a lot of really tough issues that YouTube ORG can be a really valuable resource. So, body positivity, mental health, we see a lot of creators actually talk about mental health. And that that for a lot of kids it's really it like destigmatizes and enables people to talk about what's happening and what's going on with them. The potential long term impacts of YouTube ORG on teams and on children whether it is toxic or whether it's addictive. Is that something that you wonder about? Is that something Struggle with not just as a CEO but as a mom. We certainly wanna make sure that we are doing what we can to be responsible with kids and in every way possible. And that's one of the reasons that we actually have worked hard to give parents as many options as possible for them to decide what is important for them and their family. Whether that's like What is the content they actually have access to? I mean, even letting parents just say, these are like the 10 CARDINAL videos. My kid can only see these 10 videos And so that is that is really important for us to give the tools back to parents for them to decide what is best for them and their family. Are you concerned about blooming regulation? That is well intended but actually then has a really negative impact. I would like to begin by addressing the heinous attack on the United States GPE Capitol Like all Americans NORP i am outraged by the violence How much did President Trump PERSON test you to and how much did it test you as a leader? Election integrity is

Mayhem how much did President Trump PERSON test you to and how much did it test you as a leader? Election integrity is something that we see incredibly is incredibly important. And with leaned in to in every way we possibly can. We treat all Figures and all public leaders the same as we treat any individual and so meaning that everybody is held to the same standards and so we definitely President Trump PERSON has we would hold all other presidents and all other elected officials to the same standards that we hold our creators and anyone else on YouTube ORG . What was that to fuck up for you as the city of the company? I mean that's kind of that's like a big responsibility. It is difficult but I it is very important and we also are global so we're dealing with leaders from all over the world and they were a number of leaders that are and they're continuing to be a number of leaders that that post or that there's content that maybe a violation of our palsies but we do hold it consistent standard across everything Youtube ORG was the last platform to ban Trump and you have said Channel ORG will be reinstated when an elevated risk of violence has subsided. How and when specifically will you make that decision? We'll we'll make that decision based on a number of different factors. Whether that is like events in the news, signals were seen from the from the government. And it will certainly continue to evaluate that based on a large number of signals that we see. And will he ultimately be ransated? I mean we've stated that we will reinstate him when we believe that there is no risks to public safety or no public danger. Google just remove the voting app for Russian NORP opposition leader Alexa Navalle PERSON . The Russian NORP government seems to be stepping up requests to take down content You've talked in the past about your family history, your grandparents living behind the Iron curtain, being concerned about censorship back then And Russia GPE is a huge YouTube ORG audience. Yeah. How concerned are you about Russian NORP government overreach? Tube it's the fact that we do enable so many voices and that we do enable people to Themselves and really celebrate the freedom of speech And we certainly, yeah, that's that's a core value of ours. When we work with governments or many things that we have to take in consideration like whether it's like local laws or what's happening on the ground and so there's always gonna be multiple considerations that we're gonna have to take into consideration. Said that YouTube ORG deleted a video. One CARDINAL of his videos was that At the request of the Russian NORP government. We certainly get requests from governments. And and we look in consider what's why are we getting the request? What's actually happening on the ground? And based on a whole bunch of different factors. We make a decision. So we don't always, those are not always We will honor them. In that country. Administration seems to be targeting big tech. We've seen Mark Zuckerberg PERSON , we've seen Jack Dorsey PERSON now tested five CARDINAL before Congress ORG multiple times I've heard it said that YouTube ORG is getting a pass Do you think you should be up there testifying? Well, I think we do got a lot of scrutiny. I feel like there's a lot of scrutiny. And because YouTube ORG is part of Google ORG , Sendar PERSON has testified a number of different times and answered many different questions on YouTube ORG . So, I do believe there's a certain amount of scruti And you know, if if I were ever asked a testify, it's certainly would go and testify as well. You're one of the most senior women at Google ORG , if not the most senior woman at Google ORG . Google has faced a lot of scrutiny for how it treats women in recent years DATE . How much progress do you think Google has made in hiring and promoting women Across the company and how much progress do things still needs to be made? Effort across technology as a whole to be able to be more inclusive and I think that is really positive. I've been a big supporter of it. It's the very beginning. I mean I think at Google ORG there are many efforts and there's a lot of a lot of work that has been done and I'm sure there's a lot of

And I mean I think at Google ORG there are many efforts and there's a lot of a lot of work that has been done and I'm sure there's a lot more for us to continue to do and if you just look at the stats you can see they're not enough women. We need more women. In technology. And I think we have made a lot of progress but it's still It's hard to be it's harder to be a woman in technology. It's harder to be a minority of any kind. When we last spoke 5 years ago DATE you know I asked you about being a mom you have five CARDINAL kids and you said something that really stuck with me you said being a mom makes me a better leader I prioritize better I see something growing fast and I run towards that if something's growing closely I'm like I don't have time for that how is that management strategy play I think it's played out really well I mean priorization is everything when you look at it because we have a lot of opportunity there's a lot of moving pieces very dynamic environment so if you can prioritize and say these are like the most important things to do then you know you're gonna get there faster How long do you plan to stay at Google ORG ? So I have a lot of ways that I see that YouTube ORG can continue to grow. I have a lot of products and ideas and things that aren't yet released and things that we aren't yet doing. And I'm excited about getting those done. So I think if there comes a time where I no longer have a list Projects or I feel like Would you step up and do that? Well, it's doing a great job. Please I think he's doing I mean it's a very challenging job there's a lot of different constituents and a lot of product a lot of different issues Do you still talk much to Larry and Serge WORK_OF_ART ? Do you ever talk about work? But our business is very complex right now. And there's a lot of things that are happening and so it's hard for I mean people may have different opinions but To really To to really engage it to long conversation. What do you want your like a C to be? I am proud of the way that we've been able to enable people to have a A channel to have an audience like I just met with a number of three three CARDINAL creators and like Really was able to let them shine and create audiences in a business and employ people that otherwise never would have happened and so that's certainly one. Continuing to grow that I'd say second ORDINAL it's been really important to me to to see a lot more women in technology. That has been just a personal goal of mine. It's too Like be a role model and try to support women and I feel very fortunate to be have gotten to where I have and I know is due to like many different factors. And I wanna support the next generation of women and make see technology as like a open place where anyone can come and And then probably lastly continue to grow what we're doing with education. Susan PERSON would just give you of you too. Thank you so much for having me. Do you see that coming

Do you see that coming Taiwan GPE and China GPE . To come from we will not just cut and run with unmatched breach and resources The moment news breaks 24 hours TIME a day. This is Bloomberg Daybreak PERSON Middle East LOC on top stories this morning TIME Saudi Arabia's GPE energy minister warns extreme volatility in the oil market May 4 DATE Is done more than 20% PERCENT since June Government ORG is offering special loans as the PBOC urges banks to lend more. And Israel Central Bank ORG surprises with the biggest rate hike into decades DATE as it seeks to tame inflation. A very good morning TIME .

And Israel Central Bank ORG surprises with the biggest rate hike into decades DATE as it seeks to tame inflation. A very good morning TIME . It's just gone 8 AM TIME across the Amherst LOC . Warm welcome to the show. Dubai GPE so when it comes to building a floor under the oil market you bring out the royal big guns his royal highness prince of dollars has been so man says we're wrong there is a disconnect between the future's market and the Disconnect in terms of the dropping oil prices on the future's market on the demand worries extreme volatility a lack of liquidity is leading to a state of schizophrenia this Signals We may have a problem. We may need to cut production. We will strengthen our resolve. All markets are front and center. His royal highness gave a five% boost to the oil market. Now, to the dollar. And the Euro PERSON dollar specifically a 20 year DATE low a bruising battering and the FX ORG market is missed pricing the energy crisis called the Jordan Rochester PERSON we broke parity 95 CARDINAL . Of the Central Bank ORG narrative at the European Central Bank ORG cable one 1773 DATE not just booze but bratted at you're looking at the low since March 2020 DATE inflation is now being priced out at 18% PERCENT by city group so that is Something NORP we will talk more about. What did the pros look at? What would I know? At 136 40 DATE is where we are dying two tens CARDINAL of one% ORG on the year DATE . Dropping against the yam and the yen is supposed to be eh one of those haven but of course as we go to Jackson Hold the whole door narrative goes a lot lot stronger. Let's check On the western markets. I'd like to have a look at equities before we go. Shall we though we go quick snapshot? We're biting back. We had a summer of love wobble yesterday DATE . Started charted Morgan Stanley ORG . Morgan Stanley ORG . Do you want that going into September DATE do you want that more liquidity and safety Let's put that prospect to Juliet Sally PERSON . She will take you through the morning market wrap in Asia Jewels LOC . Hey, man. Well, I think anyone will know one really wants any risk ahead of Jackson Hall FAC . That's certainly what we're seeing here in Asia LOC . Stocksole for a fourth ORDINAL session. We're really only seeing those energy players rise on the bounce in crude. Also, a little Reopening stocks in Japan GPE and this is on that report that the Nike ORG report that they could be scrapping PCR testing but as you can see the Nike ORG is lower and dragging on the overall regional benchmark index and still weakness too in the property players in Hong Kong GPE and China GPE despite this 29 1 billion dollars MONEY injection by authorities to really try Stabilize the market. We are seeing yields rise across the board again ahead of Jackson Hall FAC . You'll also had August DATE PMI ORG for Australia GPE dropping below 50 CARDINAL for First ORDINAL time since January DATE . And we're watching a little bit more strength now coming back through the dollar against the one. The one was rising earlier after some verbal intervention in South Korea GPE to try and stop. That 13 year DATE low that we had seen against the currency versus the dollar Let's have a quick look at the one it is trading at a 2 year DATE low Bloomberg Intelligence saying that the onsure you want could be around eight% undervalued here they're saying inflation differentials despite mattering less before the pandemic have become more relevant since then but authorities also Analyze PERSON I should say also expecting some more stimulus coming through from the PBOC Manus. Jill PERSON thank you very much responding Chant PERSON there this morning Increasingly disconnected from fundamentals. Prince of dollars has been salmon till Bloomberg PERSON that harmful volatility is disturbing the basic functions of the market. Let's get more without energy reporter Steven St Stephen PERSON . Gave his last week it's a tight market in reality but the futures are not Of that construction

It's a tight market in reality but the futures are not Of that construction Absolutely, I mean, when you just look at where the market has been heading over the last few weeks DATE , the big story has been this recession. We've talked about it quite a bit. Here and in our articles, you know, the market is very focused on Saudi Arabia GPE is saying and when you Look at the amount of supply in the market. The market is still tight and everyone still realizes that it is not a very cheap to get a physical cargo on the market but because of the low liqui In the future's market and because of some speculative bats you really think that's draw down in prices in this disconnect widen and that is what Saudi Arabia GPE is worried about and that's what they wanna try to combat if they were the potentially curb output. Of course this goes back to the whole debate about if Iran GPE supply comes back on board would Opec Plus be able to accommodate that without some kind of an adjustment but it would appear that the language of progress Hey Facebook coming lighter from the state department. Talk me through what they've said about the latest response from the Iranians NORP . You know, it's not just the US State Department ORG . It's also Europe LOC has said that they've they've had some basically constructive deals comments from from Iran GPE and the government there and you have seen this kind of rationing up From the US GPE government as well as from the EU ORG saying you know the possibility of a deal if something coming together could could be something in the car it's and we are definitely Took it apart in 2018 DATE that's also part of the story of why oil prices have been falling. Where you could read Saudi Arabia's GPE comments as hey look nothing is done yet you know why is there this giant self there's no Saudi NORP crude in the market how long will it take for that I'm sorry there's no Iranian NORP crude coming into the market how long will it take for that to come back in and we'll we'll Replace any supply and opera plus how will they accommodate that there are a lot of questions or law speculation and I think may you know when you when you hear what the 30 minutes TIME or says It's a lot of trying to reassure the market that we're not in the right place and prices need to be higher. Steven PERSON thank you very much Steven Stichinski PERSON the very latest on the all markets Troubled real estate firms with 29 1 billion dollars MONEY worth of special loans bounces Beijing GPE steps up the support for the main pill of the Chinese NORP economy are chief North Asia LOC correspondent Stephen Angle PERSON is with me Stephen PERSON good to have you with me so combine with the rate cuts that you and I talked about yesterday and this is an additional move now you said to me yes you manage to not throw in the kitchen sink at it but 29 1 billion dollars MONEY is it's a fairly good soup song. Yeah, that's right. I mean, I had 29 1 billion dollars MONEY . That's a nice kitchen sink. Obviously, but they do need to do something to show up confidence in the property sector. Cuz again there's been these mortgage boycotts and the property sector and new loans have been absolutely falling in the latest set of numbers in July DATE and there's plenty of money at the banks with the broadest measure of you know Essentially M two CARDINAL being very much above expectations but there's been a lack of lending so this $ 29 MONEY . 3 billion CARDINAL special lending packages is designed Perhaps less to stimulate mortgage demand but more to get those projects that are half CARDINAL completed completed because the develop China GPE simply do not have the ways it means to raise funds because of the three CARDINAL red lines and also the various crackdowns that have come down the pike so it it's a delicate Act that the PBOC has they want to stimulate the economy they want to stimulate confidence but they don't want to ramp up the risks which they started with those three CARDINAL red lines campaign a couple of years ago DATE in fact with the state council ORG said repeat We don't want to overdraw the future.

Risks which they started with those three CARDINAL red lines campaign a couple of years ago DATE in fact with the state council ORG said repeatedly we don't want to overdraw the future so hey this is what the PBOC this is what the All around the world need to do they need to make that balancing act but you have all those other headwinds manners in the economy from COVID oh at the very top the biggest headwind and no exit strategy that we know of and of course all the other problems in the Chinese NORP economy right now. Steven PERSON absolutely in global inflation it is is the angst of everyone our chief north Asia LOC correspondent Stephen Anger PERSON which takes us to this note which literally Depart PERSON . All the news channels yesterday DATE have made it everywhere. Every news channel I flicked across was talking about the city group note. Calling about inflation in the United Kingdom GPE . Could hit 18 Next year DATE . Now the last time we were above 18% PERCENT by the way was 1976 DATE . No be saying that the UK GPE 's gonna need a bay like this time from the IMF. But that's when the United Kingdom GPE did need a bay light. The gas 18% PERCENT it is this that the price caps when they're taking off in the United Kingdom GPE next year DATE As a high school you could be going from paying 2000 DATE lb for your energy bill to 6000 lb 20% PERCENT of your disposable income and a bank of England to respond to that Need ORG to raise rates to seven% should signs of more embedded inflation. You can see Too. Again, a vicious break below a below the 120 CARDINAL level but I put on this chart Valerie Territo Queen PERSON of Charles created. You've got 2 year DATE paper, no pricing, and 231 CARDINAL basis points of hikes by May of next year DATE . So, this is a dollar strength story Continues ORG to drop that chart is in the library 667 CARDINAL . Let's get to Julie and Sally PERSON . She's got your first ORDINAL word headlines from around the world. Miss Sally PERSON . Thank you Mister Crowney PERSON . Israel GPE 's Central Bank ORG has surprised most economists by delivering its biggest rate height in two decades DATE . The benchmark was raised to two% ORG Since 2008 DATE officials have been racing to get ahead of inflation which has accelerated and made an economic upswing. The top US GPE infectious disease expert she became a household name during the pandemic we'll step down at the end of the year DATE doctor Anthony Fauci PERSON has run the national institute of allergy ORG and infectious diseases since 84 CARDINAL advising seven CARDINAL presidents on every major infectious disease outbreak since the HIV crisis including a bowler and Zika the 81 year old DATE says he's leaving to pursue the next chapter if he's Korean NORP . Former Malaysian NORP prime minister Najibrazak PERSON is back in court for a final appeal against a 12 year DATE prison sentence related to the one CARDINAL MDB scandal that you've denies any wrongdoing over the state fund that had billions of dollars MONEY siphoned off Malaysia GPE 's longest serving leader Mahati Muhammad PERSON says A 50 CARDINAL 50 CARDINAL chance that Najibul PERSON eventually receive a royal pardon that could pave the way for a comeback as prime minister. Japanese NORP lawmakers and a US GPE state governor are making overliping trips to Taiwan GPE despite a possible backlash from Beijing GPE across party group from Tokyo GPE will meet president saying when during their 2 day DATE visit Indiana GPE 's governor has also visited to discuss econom Partnerships ORG . After US GPE House Speaker Nancy Pelosi's PERSON arrival provoked Chinese NORP military drills. And Elon Mask PERSON has subpoenaed his long time friend form a Twitter PERSON CEO Jack Dorsey PERSON in his legal battle with the social media giant mask is seeking to collect documents and data to show that Twitter PRODUCT understated how much of its customer base Both sides ahead of the expedited trial in October DATE Global news 24 hours TIME a day on air and dump bloom but quick take powered by more than 2700 CARDINAL journalists and analysis more than 120 CARDINAL countries this is Bloomberg PERSON manusc Just think about it. It's still ahead. It's really markets. The risks from a cut from Opec Plus. What would that mean?

What would that mean? For the Hawkish Ratorick A Jackson Hole FAC we speak to investments chief market strategist Lupus PERSON joins me shortly. If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Common theme that brings together bipartisan support for this in Wyoming GPE . We wanna make sure that people understand especially in Wyoming GPE but as United States GPE of the whole, this trend is coming. It's not going to stop. More of a small town that's growing into without a call that cryptocurrency version of Silicone Valley FAC . Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. It has been mostly a dollar story. Europe LOC hasn't under performed as much as I think it should. I think the the FX ORG market is totally missed pricing. The situation you're at. The situation is a complete rethink of the economic model near your zone and I'm just it is struggle. It's strange for all of Euro MONEY . Sending off so slowly. I think it should be much faster. We'll be testing 97 50 CARDINAL down towards ¢95 PERSON in the next few months DATE . Big call from Jordan Rochester PERSON there Namara G 10 PERSON at that strategists the perfect storm that's engulfing the euro at the moment and the more is not alone you got Morgan Stanley ORG and the others all For a bigger drop now there's a euro dollar MONEY at the moment 99 41 CARDINAL markets anticipating a hawkish referral from the federal reserve officials at Jackson Hall FAC a little bit later this week that is sparking a sell off in risk in stocks and years DATE my guest this morning is Evan Lucas PERSON chief strandologist at investment group Evan PERSON good morning TIME welcome It's interesting He talks about the energy crisis in Europe LOC and we've got it in the GTV ORG library. The cost of power for Germany GPE and for France GPE on a 1 year DATE forward basis. Is Had like a record highs. A $ 1000 MONEY equivalent Much deeper and more aggressive in the Euro MONEY . Yeah I'd agree with that and and the reason I also think it's exactly how you should be looking at it is it's the spread to the periphery as well and how much pain I mean you already hearing out of Spain GPE but coming up at the moment they're already doing rolling blackouts that things have to operate at 27 DATE ° it shows you the cost of Is so high and the the best prices

You already hearing out of Spain GPE but coming up at the moment they're already doing rolling blackouts that things have to operate at 27 DATE ° it shows you the cost of energy is so high and the best pricing as well and I the people that I think are I mean what we're talking about here is going to see fairly large if not massive increases in headline inflation in the euros on that that is clear you cannot have that kind of energy crisis that kind of price increasing and not have to chase it and that's the next part Discussion here is as you discuss before the break around what's going on in the UK GPE the same problem is building in the Eurosa GPE in the fact that inflation is going to get worse before it gets better double digit is clear that it's The next sort of fallout and how the UCB ORG managers that is there's a next question because they're not just managing as you said for Germany GPE and for France GPE and to something sent to Spain GPE in Italy GPE who managing it for all of the peripheral zone countries and those countries that would start paying Go for it. Let's let's take a little bit deeper in that cuz there's a lot to unpag and the narrative is the ECB are gonna have to chase their tails I mean they haven't even raised rates I put it to you that we're gonna have a tree moment in Europe LOC but you're taking the other side of that tree that's ground that's fine how much more aggressive did the ECB need to get before Christmas DATE From my perspective I think they need to get quite more aggressive and starting to move towards one CARDINAL even one and DATE a half percent and and again the reason that's not that aggressive considering what you With what's going on the fed ORG or what is possibly gonna go out there the BOE ORG or even at the BO you know the BOC is all chasing that tail problem the Euro ORG has different crisis they obviously have the war on their doorstep they do have to make sure they continue Economy to move but they're going to have an inflation okay they can't catch Does one CARDINAL one and a half The Year Hawaii GPE put a base in the year at 9597 DATE or is there a deeper lurch to the left of 97 CARDINAL I'm being generous here on Euro dollar let's square that away Yes and that is the question I mean again that the missed pricing is seeing in table would suggest probably not I mean if you look at what is likely to happen from the Bank of England ORG the the speed of rate rises there it's not catch And it's not necessarily gonna save the euro because I think the market is looking for the point of view. The economic crisis is going to be a bigger problem than obviously the return that you can get from grabbing on to the euro at these cheaper prices with a high yield that's been Offer because again the inflation kill is there. The real year DATE that you're getting from EuroZone ORG is not good enough to really chase it. So I don't think it's gonna catch it mothers. I just think it easy bee has a problem now where they're gonna have to ask is it price Ability we chase or is it continuing to try and grab some form of economic stability and neither of them are good outcomes let's let's let's put that out there and that's why I think Europe LOC is going to be the epicenter of the problems for the rest of 2022 DATE and starting 23 CARDINAL . Okay let's put it back to the UK GPE starting getting crushed I had BMO ORG with me yes you say yo you're gonna get one CARDINAL last lurch to the left in Sterling GPE it's all about the dollar the dollar will top out in a month DATE 's time rather than 3 months time we can debate that forever but I Whole name on Sterling ORG . 231 CARDINAL basis points of hikes. Would not see if Sterling at the moment. City call 18% PERCENT inflation which is fairly rabid. Sterling go on the outright and on the crosses. Yeah, so I'd agree with you on the 18% PERCENT . That is a very, very big call. It's not out of this world. Let's let's also probably put that there but I would say that you know, maybe 15 CARDINAL is probably the the top where I would It will probably therefore again the question is we are arguing around the economics and what the economic crash will do and whether or not the inflation chasing and therefore the rate rises can put a base inside that currency again I still think that the moment the pricing is around the economics The all these comes back to the US GPE dollar and the attraction to the USD ORG is just so strong that even with that catching of inflation it's not gonna be enough to have set it because you then look at the euros zone you look at what's going UK GPE and the economics just don't stack up to try and chase that yield because again if you look at real yields with let's take cities idea of 18% PERCENT that is still not gonna be attractive enough to really go near it cos you real yields are cru You will not space and that is why currently trade is consist one CARDINAL road and that road is the USD it's the safest it's the biggest and it's the one that's giving you the return in the current market Do you know we managed to do Evan PERSON do I

A one CARDINAL road and that road is the USD. It's the safest. It's the biggest and it's the one that's giving you the return in the current market. Do you know what we managed to do Evan PERSON do you wanna make history on Bloomberg Go on You managed to not even say the word Jackson PERSON whole in the wake of Jackson Ho GPE that's more mindful than yours to be fair. To be fair. I was driving the bus. Having good luck. Let's see what Jackson Hall ORG delivers for the market. The chief market strategist at investment group. Making history on Bloomberg PERSON . Right here. China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs of more than triple since the year 2000 DATE That consumption has helped to feel astonishing growth but it's come at a cost. There is no way to tackle climate change unless China GPE reduces its emissions to need oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hamper industry All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Let's get a quick check on my latest business headlines from around the world. Zoom fell in late trade after projecting sales and profit for the current quarter DATE Hey Competition intensifies from Microsoft Teams ORG . Mutually agree that he would depart next year DATE . From lockdowns and Chinese NORP consumer boycotts The company surprised investors with a profit warning in July DATE following a slower than expected recovery in Greater China LOC . And forward is cutting 3000 CARDINAL jobs this week DATE to fund the shift towards electric vehicles. The cards will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . See you Jim Folly PERSON has repeatedly said the company is too many workers Ford ORG is planning to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles A year DATE by 2026 DATE . Where do you go for your summer if you live in New York the Hamptons and it got a lot more expensive from the second quarter of 2019 DATE prices rose by 88% PERCENT but if you want a chicky number in the Hamptons well prices are dropping And quite aggressively for April, May, June, July DATE . Let me show you the sequence of discoint. Santa GPE and April DATE she tanked by eight CARDINAL . Four% in May DATE they wobbled furiously in June DATE Dawn

Wobbled furiously in June DATE dine 11% PERCENT but don't fear as I say prices Have risen by over 88% PERCENT . Since the second quarter of 2019 DATE and 70 CARDINAL homes still sold for more than QUANTITY 10 1 million dollars. Oh to have a home in the Hamptons. Let's see whether Danny Berger PERSON has we had cheeky little number. Eh up there Okay we'll leave you with those thoughts of the Hamptons and what you might want to Dream of Let's have a look at equity features. There you go. Swimming pools, canopies, let's have a look at the torture. You need a little bit more in the equity markets. I mean, yet tanked by two% ORG on spooze yesterday DATE , two CARDINAL . Five% on the Nas X. Equities ORG this morning TIME . The summer DATE of love, deteriorates, the risk reward is skewed at the moment according to Morgan Stanley ORG , for cash, Do you see that coming through 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People analyze Marcus You can enter phrases. Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. This is Binberg Daybreak PERSON Middle East LOC . Our top stories this morning TIME . Saudi Arabia's GPE energy minister. More than 20% PERCENT since June DATE . City group says the energy crisis could see UK GPE inflation. Top 18% PERCENT next year DATE . The point falls to the weakest level since March 2020 DATE . China GPE steps up. It's efforts to stem a deepening property crisis. The government is offering special loans as the PBOC urges banks to lend more. Inflation Let's check in on those Where will you take us Well maybe I'll start there manners because certainly the one has very much been in focus you can see it weakening further now against the dollar about a 10th ORDINAL of one% ORG but we did have some verbal intervention earlier from Korea GPE really trying to stem that slide yesterday DATE of course the one falling to that 13 year DATE low and we heard from authorities saying that they are Confetti ORG offshore speculative factors. President Yuk PERSON

Of course the wine falling to that 13 year DATE low and we heard from authorities saying that they are watching 30 CARDINAL offshore speculative factors president Yun PERSON also talking about One but it hasn't really done much to stop that slide although we did have a bounce earlier it is though a risk of session you can see yields rising stocks broadly lower as we look ahead to Jackson Hall FAC and regional stocks down for a fourth ORDINAL session so that is actually our longest losing streak in around 2 months DATE and the benchmark index holding At about a 1 month DATE low and what we are not seeing too much support in is in those property players in Hong Kong GPE and China GPE despite that $ 29 MONEY . 3 billion injection from authorities to try to stabilize that market so investors still very nervous and cautious about the overall property space in China GPE minus Well done segway beautifully perfectly at one CARDINAL area of the upside is tourism stocks in Japan GPE are you off to Japan GPE have you been to Japan GPE recently is it on the list Look, I know you're gonna give me some grief about talking about tourism. I've never far from a tourist story but look, we are actually seeing some very good games coming through. In some of these reopening plays in Japan GPE and this is on a Nike Report that they may actually scrap that PCR test that is needed of course this is one CARDINAL hurdle that travelers across the world are not really wanting to take at the moment and there is also a report They could actually scrap the cap on the number Still quite tricky to get there so if this is ease that is going to be a good boost for this overall economy and reopening stocks moving higher versus a downbeat topics in Manus Mt. Cranfield LOC puts a really interesting point about these reports that some of the quarantine measures in Hong Kong GPE could be eased for a business summit in November DATE Trade is not really buying into that story they want to hear that quarantine is gonna be scrapped all together before you see that reopening play in Hong Kong GPE manus Okay Jill PERSON thank you very much you did Sally PERSON at tracking her next move across the globe she's coming to an airport near you to Israel they had rates by the most since 2005 DATE tightening up their grip for the fourth straight month DATE the move surprised economists who have been expecting a smaller increase among Good to see you. We'll get you a travel plans at the moment. But what a vicious old hike, okay? That's right and this is actually the third ORDINAL time this year DATE that economists have been surprised by the aggressiveness of the Bank of Israel ORG with a message from the bank very clear we're seeing very strong growth Labor ORG market and we're seeing inflation and it's quite broad based and that's why we feel the need to hike rates by 75 CARDINAL basis points more than economists we're expecting an in fact the central bank doesn't believe Gonna get down to its target rate of one CARDINAL to three% inflation The second quarter of next year DATE at which point it'll hit 275% PERCENT . You know interest remain rate remains low even after this hike at two% ORG and that's really what we heard from economists Michael Nyes PERSON at city group saying this move leaves us in no doubt that more tightening Hike at the next meeting in October DATE and then again in November DATE this this we'll see how this plays out over The Bank of Israel ORG a little bit more room to run here. And the face of the Iran GPE nuclear deal hangs in the balance but there are signs of progress both from the US GPE side and from what the Europeans NORP are saying. Yeah, the US GPE side is really important because we hadn't Remember the EU ORG had its final text then Iran GPE said well we have a few changes they sent that back and then that went To the US GPE . But the first ORDINAL indications that we are hearing is that this is positive progress. The US GPE saying that we are closer to a deal than we ever have been. And they're saying that you run drop some of its demands that they considered non-starters One seems to be the declassification of the Iranian NORP revolutionary guard core as a terrorist organization that something iron had been pushing forward but the US GPE had stirred firmly against that said a lot of the discussion recently has focused Economic gear.

Terrorist organization that something iron had been pushing forward but the US GPE had stirred firmly against that said a lot of the discussion recently has focused on the economic guarantees Iran GPE that might factor into place if they were to come back to the deal the US GPE has largely said it can't really guarantee that much and that's why a lot of strategists who've been following this for the past couple of years DATE still pretty skeptical that we are going to see a deal here that said oil markets were looking at triggers Implemented in a phase fashion over the course of several months DATE and likely really only playing next year DATE that said Iran GPE says it could ramp up it's product Capacity to more than four 1 million barrels per day by March 2023 DATE . You know, that would have a really significant impact on on the tightness Oil market that we've seen for the globe. Yep I I'd certainly a huge issue let's talk about Pakistan GPE because we got officials that are saying the country will receive billions of dollars MONEY in support but it comes from Kata sorry Arabia and the UAE do we have Detail PERSON as yet. Yeah according to the acting governor of the Bank of Pakistan ORG at Cutter Pledge two 1 billion dollars WORK_OF_ART in support for Pakistan GPE Saudi Arabia GPE will your mark financing for oil of to the tune of one 1 billion dollars MONEY in the UAE ORG will do Things similar. This very important for the IMF ORG , the IMF ORG has said, we're willing to consider financing for you but we See what golf countries do first we want them to form up the commitments before we make a decision that decision could come at a meeting that's happening next week DATE so we're looking for a potential announcement of this formal plan perhaps today DATE at the prime minister right now is going to be visiting For the next 2 days DATE so that's potentially when we could get this announcement that said assets and Pakistan GPE have been under a lot of pressure we see in consumer inflation over 20% PERCENT and then the Talking FAC about in the past couple of days DATE potentially pressing suit against former prime minister Imran Khan PERSON investors haven't loved that and we've seen the reaction and the Market with bond prices dipping across the board Okay so well thank you very much on Fox Minda PERSON at the Financial Centre FAC in Doha GPE with a very latest round up on the Middle East LOC markets well mini markets they did well in July DATE and in August DATE that global boost across equity markets rebounding 12% PERCENT from the lows but the FG ORG home is things that the second half of the year Be a bit trickier Simon Kitchen joins me now will it certainly getting tricky at home in London GPE where you are tricky in Europe LOC and certainly some of the bullishness and stock assignment has been prigged overnight so how much trickier does it get for Mina GPE ? Morning manus. I think that you've had a very good rebound in the past 5 weeks DATE had some sorts look at Martin ORG per nearly 60% PERCENT asking his pricing and awful lot and I think you know it's second quarter was Hey Facebook Please but it's gonna be a bit more a bit more normal in that in the second half of the year DATE . And these stocks are pricing and awful lot. So I'm I'm slightly surprised that the Rajhi ORG survey that says that Hey Out there gonna be weak. In the in the second half of the year DATE and I think you wanna look more stocks that offer yield and and I think staples are interesting as well. Okay I mean the Araji survey it is out as you say they expect here's a shot banks will open I'd love to find a broker in in the Middle East LOC that doesn't wanna buy banks banks will like perform petrols and software and services but if I look at the breath of the Alraji ORG survey They are cooling a little bit more towards siding so he has I performed and you would flag that overall how much of a breath or pores you get inside I think you see, you know, quite a bit of consolidation. I think you'll still soon rate rises on that.

How much of a breath are pores do you get inside I think you see, you know, quite a bit of consolidation. I think you're you're still seeing rate rises on Gonna be soft I think more of the interest is is gonna come from Which is her results for the second quarter DATE so what I'd be doing is playing South Africa GPE and selling Martin Okay so you you you Trade that as a spread or you'd do that as a switch. In terms of the flow a great deal has been made throughout the first 8 months of the year DATE anyway assignment in regards to institutions and overseas institutions under allocated to minor do you think there are at benchmark do you think that they begin to hold steady naira how do you see the flows in the last quarter of the year DATE Hey Facebook still incremental money to come into to the region I mean some of these some of these activities Still quite slow moving and remember that our markets are still quite high touch Compared to two CARDINAL over longest standing emoji markets. So that means that incremental money is still gonna be coming in. I think that's the fireworks obviously that you saw in in the second quarter of the year DATE after the base interview crane. Those are behind us and and the overall context of course Is one of Yes I think from managers we'll still be adding more Money to commodity Exporters like the GCC ORG away from Mall Mainstream AM FAC so that is in our favour it's just a perfect local investor in is gonna have Out of arrest. So I'm available Brent 97 22 LAW WCI ORG 91 15 how important was ABS's intervention in New York GPE A cut in production from Opec Plus because of this divorce between of reality between future's prices and the tightness in the physical. Well it's a it's a tricky situation cos you've got so many signals on Earlier about the ignore the Iran GPE deal and is it gonna come through but then you got US GPE midterms in which Republicans NORP might come in and sort of that deal Sanctions ORG coming through on on Russian NORP crude like he was here and then as he says in his comments paper market is very thin So I think he's just putting that option there on the table because he doesn't want to see it complete Market but it is not necessarily gonna have to follow through If if you wanna say the Iran GPE deal doesn't come through or if if Russian NORP crude is is finally taken off the market Okay, Simon, thank you very much. Simon Kitchen there. My guest this morning TIME on Meeter Markets LOC , managing director, head strategy at EFG Hermes ORG . This is Bloomberg PERSON .

What is your base case for Italy GPE in terms of what happens This week DATE as the world watches inflation rise employment rebound Written Summer has already been punctuated by scenes of trouble chaos and there is more to come workers of the country's largest container shipping port Reports from Felixda ORG . This is a significant moment in the UK GPE 's summer DATE of strikes. Felix Sto PERSON is the UK GPE 's biggest container port and Four 1 million QUANTITY containers pass through it every year DATE . So the Russell PERSON group estimates that about Going to be affected by this 8 day DATE long strike. We're on day two DATE . It's about 2000 CARDINAL workers who are disputing their Here in the UK GPE . In terms of how disruptive It's a monitoring 11 CARDINAL more that will add to delays and costs Black sports as it's going to take 24 days DATE to clear the backlogs and port officials are saying that the port is operating at less than 10% PERCENT capacity but of course disruption is the whole point of a strike the unions are here to send a message they've already rejected one CARDINAL pace settlement that would have Less than the 10. One% inflation we're seeing here in the UK GPE now the At the port say that this pay rise is to cover the whole of the year DATE and inflations only just tipped into double digits they'll revisit the issue next year DATE if inflation is as high as city thinks it will be 18% PERCENT city seeing now but in the meantime there is the risk that the Through wage price spiral contribute to the inflation that Trying to shield their members from through the strikes. Lizzy PERSON Burden for Bloomberg News ORG in Felixa GPE . Let's go back to our Middle East LOC markets now with our equities reported far at Abrahi ORG . She joins me around the desk. We've got this From Alraji Kappa PERSON and we just been talking to some of the cause and it in regards to Patrick Comical's ORG we had some of the broad brush strokes a little bit earlier what should I like for you absolutely so looking at the fund manager survey investors are actually less bullish madas This quarter DATE than they were in April DATE . That's about 22% PERCENT of investors seeing that today DATE going up over 10% PERCENT by the end of the year DATE 48% PERCENT expected to perform in the five to 10% PERCENT rage and meanwhile we have about 30 Expecting it's actually Be flat on the year DATE or up as much as five CARDINAL So that's a little bit of a mixed performance over here definitely very different than the performance we've seen in April DATE I mean in terms of the Patrick PERSON chemicals yes that is a little bit Rising but the banks they're still the top call in Saudi Arabia GPE among investors meanwhile ensures are the least among the least favorite sectors as well as capital Goods NORP and retail retailers. Talking about a switch out of my Of planes some of those side exposed

Retail retailers. To switch. Some of those side exposures. With some big volatility in some of the big names inside yesterday DATE of course is Royal Heims ORG came out to create a floor in the oil market but talk me through some of their premierations around this side eating narrative. Well, looking at the stocks that sit up to me personally yesterday DATE , I think their earnings are still a little bit of a key story inside the area but even though we're towards the The company sword for a second day DATE after reporting better than expected earnings but really what the market is doing here is compar That actually had rather lackluster earnings. They missed estimates. Meanwhile, so that go came in and beat meanwhile also Nahi PERSON which is a company that recently debuted in Saudi Arabia GPE sort of fresh record. Again Better than expected earnings. It is a top pick for Ubar GPE capital because it's to play on the social reforms and infant care. Give us a quick call later on. We'll have them on tomorrow DATE morning TIME . We'll talk about the milk prices. In terms of the Israelis NORP of course going for a mega hike Really shocking the market I would say what are the ramifications for stocks well stocks dipped quite a bit after you know the centre bank decision certainly there was global pressure on equities around the world but you could see that the market was definitely Can buy surprise some of the key drags on the TA 35 of Steva GPE was Banklumi Israel discount bank soap again the lenders coming under Globally banks aren't actually benefiting that much from the prospects of higher rates because of these fears of a recession globally not just you know in the US GPE so that's what's going on the With more red hacks seen down the line in Israel GPE keep an eye on the lenders as well okay fine thank you so much for Lives on the equity market course Here in the Middle East LOC . Fine. Thank you. This is Bloomberg PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE . By Bloomberg PERSON 's Amanda Gordon PERSON . Investors are kinding down to Jackson Blues PERSON on. For decades ago DATE he says the fed ORG should be more communicative On where policy has got to go. If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now

Another maybe 75 CARDINAL basis points the next song we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now we've learned from history on this learn from our experience is the more the vet can communicate what's objective is it would like to get back to two% ORG inflation and need to do Reduces inflation doesn't reduce the growth the economy just inflation better off will be so that communication that stipulated about what the policy will It's very important right now and I hope that that does that. John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what roller half CARDINAL financial conditions play and should the fed ORG be paying more attention to this or at least a loot to that fact in order to sort of bring down This bullishness that we're seeing. Well, they have Attention to the the market This is what needs to be done. This is what's worked in the past. This is how we can do it The the more convincing it will be. I think that what the markets don't like is uncertainty about what's gonna happen to us more uncertainty today DATE . I think that's one of the reasons why the market's went down. But the the more that the Communicate PERSON So called Taylor PERSON whatever you wanna call it or advantageous cuz it says hey we need to move a little bit further and hopefully that will cure the problem a more rapidly than people expect. John when you wrote about this and that in 82 CARDINAL you flagged the scenario right early deceleration risking the issue around credibility and then the the risk of of really disinflation causing a recession given perhaps from the Errors before does that mean we're at a point where recession is going to be maybe a likely cure for this about inflation I don't think it needs to be part of the cure but we we've experienced if we let inflation build up one CARDINAL more time like it's in the 70s it was 7 years DATE of hiring place If we nip it in the bud which I still think we can then you don't have to have this negative effects that people worried about the right to worry about cuz they've seen in the past but the more that there can be A stipulation. This is what we need to do. This is good. Make the economy healthier is to make a stronger growing economy faster and I think that's what we should emphasize. This is better for job. Just as better All over the place right now. And we'll be live at Jackson Hole FAC later this week DATE forward that crucial power speech as well as the interviews with the fed ORG presidents from Kansas City GPE , Philadelphia GPE , Saint Louis GPE , Cleveland GPE , and Atlanta GPE . You fed me up. Okay, now. To understand this scale Of the energy crisis Rest of the world but I wanna focus on your this is Dutch Gas ORG features five CARDINAL times the equivalent of a barrel of oil. Now that that just gives you some kind of understanding. But how does that translate to inflation for the central bank? Looking at inflation in the GTV library not just the Dutch NORP gas features but the energy Year on year DATE . Now you understand why the economic headwinds for the euro are turning into a hurricane. We're subparity for the first ORDINAL time. Again, in 20 years DATE , you're getting colds out there. 95 CARDINAL and 97 DATE . Morgan Will ORG continue lower. From London GPE HQ and our Middle East LOC HQ. It's a beautiful day. It's Dom in London GPE .

When the price of anything goes up, the consequences reach far beyond what you'd expect. But perhaps most of all, when it comes to food. In 2010 DATE surging food prices help spark the Arab Spring lives were lost regimes fell and the consequences are still with us Once again food prices are rising and fast Energy cost broken supply chains and surging demand were just some of the factors that have driven food prices to their first ORDINAL record high since the Arab Spring EVENT . And that's all before a war between two CARDINAL of the world's biggest food producers. Ukraine GPE is called the bread basket of Europe LOC and taken with Russia GPE the two CARDINAL account for about a quarter CARDINAL of global we trade they produce more than half CARDINAL of the world sunflower seeds and oil nearly 20% PERCENT of the barley Now throw in rising energy prices and processing transporting even refrigerating food is more expensive plus fertilizer production is extremely energy intensive less fertilizer means lower prop yield and prices rise even more. Pandemic revealed how complicated and fragile global trade systems are Global agriculture, perhaps even more so. Unlike metals for example, food goes bad. In crops take months DATE to grow in our vulnerable to unpredictabilities like the weather. Rising food prices will be felt everywhere but the poorest countries in the world will be hit the hardest. And as all these factors compound the real fear is that record high will lead to record high and ultimately to a global food crisis with vast consequence. On the David Rubenstein show Hear conversations. Cover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that rising. This is Bloomberg Day Break Your Up I'm Danny Burger PERSON in London GPE alongside Manish Cranny PERSON in Dubai GPE and these are the stories that's set your agenda. Crisis compounded European NORP gas prices continue to search ahead of another supply disruption as German NORP chancellor Schultz Infrastructure ORG has been built in Germany GPE and that is short time Recession fears and winter DATE warnings push the Euro dying To two decade DATE low concerns about growth continue. After Saudi Arabia's GPE energy minister warns the alliance could cock production Danny PERSON a very good morning is Royal Highness Bills ORG of Florida GPE in the oil market but it is about FX ORG and FX ORG ball that is ground oh for me in terms of risk. Danny, good morning TIME . Good morning TIME , man. It's remarkable. How quickly are obsession, the narrative of this market has changed to watching equities float higher with hopes of a fed ORG pivot to obsession over the energy crisis in Europe LOC with

The narrative of this market has changed to watching equities float higher with hopes of a fed ORG pivot to obsession over the energy crisis in Europe LOC with those prices just Rocketing ever higher. Sergena Way PERSON And we're not an extreme volatility yet let me take you to Grind oh which unseated risk which is right over three% GPE and they're building up the short positions volumes on short positions on euro dollars going into Jackson Hall FAC on Monster LOC oil has a Four% weapon is raw harness expensive dollars has been someone talks about potentially having to cut because there is some kind of a schizophrenic divorce between future's prices and reality of the oil market We are seeing levels we haven't seen in 20 years DATE and it is because of the very essence of the They're gonna have to do. One CARDINAL , one CARDINAL and a half percent to get price stability. Put that in your FX ORG pipe and smoke it cable crushed one 1765 DATE and we are not done yet. City group calling 18% PERCENT in terms of inflation. It's a crush Danny GPE good morning TIME . Morning manice will the calmness of equity future this morning TIME belies the move that we saw yesterday DATE some extreme volatility a drop of more than two CARDINAL When it comes to S and P 500 futures there was a slight rebound to start your future session now they're unable to hang on to that S and P 500 features they are After that Friday DATE option now dealers are positioned Way. So there's your view in Europe LOC and the US GPE . Let's head Studio jewels. Danny certainly the same here in fact the energy set to really the only bright spot on that rebound in oil but it is a risk of session for a fourth ORDINAL session today DATE across Asian NORP markets and really being led lower via Japan GPE you did have this move Chinese NORP authorities to try and stabilize the property market $ 29 MONEY . 3 billion CARDINAL worth of special developer loans but that's not really helping out the property stocks too much down by about nine tenths CARDINAL of one% ORG in the afternoon The CSI ORG 300 CARDINAL losses though I guess a little bit better than what you're seeing across some of the other markets. You talk about FX ORG two. I mean we've been watching very closely what's been happening in the wine and earlier today TIME there was actually some verbal intervention to try and stem this 13 year DATE slide against the Greenback PERSON you did see a bit of a bounce there coming through on the warm we also heard President Yun PERSON but as you can see the dollar once again king up by about two CARDINAL tenths of one% ORG and let's put the board and have a look at what we're seeing more broadly and Asian NORP stocks cuz as I mentioned we're down for a fourth ORDINAL session the longest losing streak in around 2 months DATE holding around a 1 month DATE low we've gone through the 150 day DATE movie average and looking like we are going to of course You to fail at that point till if we get through that mark we're going to be back to around a 2 year DATE low on this index manus. Jill PERSON thank you very much Stuart PERSON with the Asian NORP markets let's get to the team of reporters around the world Andrew James PERSON joins us with the latest production warning from Opec ORG more detail from Aswan GPE Hines Berger Berlin PERSON to shed some light on this German NORP gas crisis the scale of it and what Christian NORP what what chance of shoots is trip to Canada GPE means Danny. And we'll also get a preview of some of the numbers when it comes to Europe LOC with those European NORP mines do later today David Palace PERSON here with us in London GPE but Manus PERSON let's start with the oil story with Saudi Arabia's GPE energy minister And it's allies maybe forced to cut output as the future's market has become increasingly disconnected from fundamentals from what we're joined to buy Bloomberg ORG 's Andrew Jane's PERSON so Andrew I mean is this a broken market and what is that mean for what Opec does from here on out? Hi, Danny. Well, I'm not sure it's a broken market. I mean, the south is talking about a disconnect between future's prices Market PERSON .

Hi Danny well I'm not sure it's a broken market I mean the south is talking about a disconnect between future's prices and the market fundamentals and Saudi NORP Was also saying things about unsubstantiated stories about demand destruction Kind of interesting to contrast their attitude. They were quite hands off when prices were going up but now they're coming down. They're a lot more talking about decisive action. Yeah so this is gonna they're talking about production cats and this is gonna make things pretty interesting heading into the next opac plus Eating PERSON an early September DATE . We saw a big market reaction yesterday DATE when this first ORDINAL came out we'll dropped as much as almost five% but it's sort of closed little change and we're up moderately today so yeah expectation is that there could be some cat spots going by the market reaction I don't think The view I don't think is that we're not not in for huge reductions there. Yeah it it's not the amount Andrew it's the messaging we've just had a cut One would say to appease global geopolitics And suddenly to reverse on that throws throws a spanner in all the the lobbying that we've seen Andrew let's see what happens in the September DATE meeting Andrew James PERSON that was very latest on Opec ORG to the park crisis in Germany GPE and Europe LOC we're seeing part prices in Germany GPE surgeon to over € 700 MONEY and mega watt hour for the first ORDINAL time The market's in panic over the country's dependence on unrevival Russian NORP energy supplies chancellor all of Schultz is in Canada GPE part of the push to find alternative sources of gas and emphasize that the government is working hard Dependence off Russian NORP imports. We are deciding on making it more easy for companies to switch Going back to oil Necessity of Let's get to Burger Jane ORG and she joins his nicer burger. Here we are. Germany GPE . I had one. I had Kristoff Rude PERSON with me here. Yes, he said the front page of Germany GPE . No longer have COVID charts. They now have energy storage charts on a daily DATE basis gas stored charts. Hitting real crisis levels aren't we Well, it is going to be difficult. There's no doubt. Basically, Germany GPE is facing a for the coming months DATE . A shortage in energy and we have to see how the winter is. The government is Looking closely at the temperature really in in autumn so because they still have to fill up the storage at the moment it's 80% PERCENT but to get through the winter and also through the next winter DATE they know they have to build up more and this is also the reason why basically salt is travelling the world he has been Way and now he's in Canada GPE in order to basically get gas for Norway GPE or also Canada GPE in in terms of LNG ORG . Alright, Burgett PERSON . Thank you very much. Bloomberg PERSON 's Burger Yen PERSON and we'll be back throughout the program to help us cover the energy crisis. Now, speaking of which, we are gonna get European PMI's ORG this morning TIME for August DATE . They'll provide more insight into the challenges facing the euro area. Economy with this sort of energy cross cost That burger was talking about in the risk that Russia GPE cuts off supply for more let's get to David Powell PERSON our senior year economist for Bloomberg PERSON economics I mean David I'm I'm assuming that these numbers I Can even have the worst of it in them Likely to to to get worse. They won't reflect this most recent surge and energy energy prices. We've just spoken of because the reporting period is already over for the survey. But in all likelihood the survey is going to remain in contractionary territory after having fallen below 50 already in the month of July DATE . Hm. David welcome back to Daybreak Europe LOC now we've got you up early We're gonna keep you coming back in again and again. So, my last guest in the last hour TIME said that the ECB is now so far behind the curve. They're gonna have to not just raise rates by 50 CARDINAL basis points, even in the eye of an energy crisis, but 150 CARDINAL basis points, and this

That the ECB is now so far behind the curve. They're gonna have to not just raise rates by 50 CARDINAL basis points even in the eye of and energy crisis but 150 CARDINAL basis points and this is where the real catch up game begins to come to play. Does that does that even make sense to you 150 200 CARDINAL basis points by Christmas DATE time from the UCB ORG . Well, we look for the ECB to have to raise have raised to about one CARDINAL . Five. That's the deposit rate by the spring of next year DATE . So, in total, that would be 200 CARDINAL basis points from the start of this hiking cycle because remember, they began at negative 50 CARDINAL basis points. So, the next step in It's likely to be AA moving September DATE of 50 CARDINAL basis points and then we expect 25 CARDINAL basis points at each meeting after that until March DATE . Okay, David, thank you very much. Let, let's see what September DATE brings to us. David Popp PERSON , our senior, your economist for Bloomberg PERSON economics. Coming up, the perfect storm, we discussed the Euro ORG slide, Across the region. Later in the program. This is Bloomberg PERSON . Is it possible the industries in an arms race that will Lead to spending itself into an over I mean that has happened before. We we've looked at this very carefully and yo the digitalization of everything tell me what aspect of your life Emily isn't becoming more digital Prevent that but yes. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall and estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point. I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Technology can satisfy that needle. As the world watches inflation rise employment rebound Economic policy symposium. Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving It has been mostly a dollar story. Europe LOC hasn't under performed as much as I think it should. I think the the FX ORG market is totally miss pricing. The situation you're the situation is a complete rethink of the economic model near your zone. And I I'm just it is struggle. It's strange for all of us to see the euro. Sending off so slowly. I think it should be much We'll be testing 97 50 CARDINAL down towards ¢95 PERSON in the next few months DATE . Jordan Rochester PERSON there no.

Slowly I think it should be much faster we'll be testing 97 50 CARDINAL down towards ¢95 PERSON in the next few months DATE Jordan Rochester PERSON there no you're a G 10 FX ORG straw just manage who says that we could see euro hitting ¢95 PERSON we certainly punctured below Waffling PERSON with that and that's perhaps The reason why the euro hasn't had as dramatic of a Perhaps we've been ignoring just how bad things might get in the region. And the very essence of Rod Rochester PERSON had to say goes to the heart of the issue which is the explosion and energy crisis. Let's have a look at the Euro PERSON dollar and the euro on the crosses. You were talking about it at Seen below a 20 year DATE low and again cascading lower all the way down as you can see there Danny at down over one% ORG in the past 2 days DATE . Let me just show you what's going on in the energy market. This will bring to Kiran Ganash or Gast Is the explosion in energy prices for France GPE and Germany GPE at you're looking at Electricity 1 year DATE forward in French NORP and German NORP electricity prices German NORP benchmark year ahead prices hit € 700 MONEY per mega 1 hour TIME for the first ORDINAL time ever yesterday DATE and that is hitting the region it's facing a multitude of Your issues right now. The fallout from the war in Ukraine GPE driving the energy in the food costs. A severe dright. Let's put all of this to Kieran Ganache PERSON . He's the multi-acid strategist for UBS ORG global wealth management. Karen PERSON , good morning TIME . Honey ORG toxic Is the euro at the moment Well it's not in a good spot that's for sure because we've got these surging energy prices and even a hawkish easy beer would seem is more than the fed ORG so FX ORG is a relative game we're expecting to be the euro falling down to 95 CARDINAL sent against the US GPE dollar over the next few months DATE as well and it's really Deteriorating is putting the European Central Bank ORG in a very difficult position. Kieran PERSON I I might be being a bit dramatic here so so feel free to you know put me in my place but do we even care if you're trying Possibility of Europe ORG freezing of the main growth and the main exporter Being unable to do so in an energy crisis. We meet certainly potentially a very severe headwind for the global economy and particularly if as chancellor Schultz was still talking about earlier on your show at the Deer Me starts shifting their electricity production away from gas and towards Decline ORG inflation that decline in inflation and expectations which is really help support the market over the course of the past few weeks DATE . If we start seeing oil demand rising because of this gas crisis in Europe LOC then you may even have inflation and surprises to come And that could put the whole global picture log into It just seems so ottered every morning you get in the car and you just read one Story after another Jackson Hole GPE rates starting crush euro mangled China GPE imploding And Mark Hayfully PERSON hey sleep at night TIME and B Hi do you deploy Morgan San Leandro Sheets ORG yesterday DATE big headline on Bloomberg Cash PERSON was more appealing than stocks no would you agree with that at the moment in the short Look over the short term we think there is more chance at the market falls than than rises I mean I think we have got a lot of uncertainty had a lot has been priced in in terms of a fed ORG pivot in the South Landing I think that these tankers is still gonna be need to be tested and by the market what happens if oil prices start to rise what's going to happen in winter DATE There's a lot of risk that isn't in the market right now. So in the short term and I think there is more chance that stocks fall than rise. And I think what we're talking about with investors as well. What if they do rise do you still have a plan to make sure that you're getting invested for the long term? Is that supposed the big risk for our clients in this kind of period? Is it the volatility perturbed them from the market 3 or 4 years DATE and so

And then they never get back in over the course of 3 or 4 years DATE and that's when it gets really costly. Yeah, yeah, Karen PERSON . To this idea that, you know, we we don't have a grip on on exactly how things will look. I mean, everyone was transfixed by the city story yesterday DATE that inflation in the UK GPE could reach 18% PERCENT in a gas crisis. Are you For this kind of environment right now. Or we're expecting to see pain weakness as well we're looking at 115 CARDINAL against the US GPE dollar coming up and you know I think the bank of England GPE was already forecasting 13% PERCENT and before the latest surgery we've had in energy prices so been really very very significant adjustment is taking place In Europe LOC to this change in in power prices and it's gonna take a very long time for it to work through in terms of FX ORG raids and the implications for the broader economies so now I think for for investors you know staying well diversified at this time is really important and New Europe LOC is not a place that It pays to take that go bats right now But you'd still sort of favor the US GPE 's is my sense on on reading. I like what you say which is use these rallies and we have had monster rally in July DATE and August DATE to technically lighten up the portfolio. I presume that that is don't chase the rally but reduce your excess exposure. Where Reduce exposure the most. Oh we think in technology is one CARDINAL area where we are are concerned because we have seen that big rally recently and you know of course parts of that spectrum are cyclical as well think about some of the digital media names I think about the Names ORG . So we're talking about lightening up there. Areas we like are eh energy because we think that is a good hedge Again some of those downside scenarios for portfolios and we also like the UK GPE market perhaps ironically given the situation in the UK GPE but given the weakness in the pound earnings for you head companies are actually holding up relatively well and it is quite a defensive market at the moment Yeah yeah I'm guessing again it's some of those large cap UK GPE names maybe not the domestic plays Kieran PERSON you know this earning season we equity is held up relatively well especially The US GPE but when you look at the global picture especially in Europe LOC and those expose to the energy crisis You expecting are you pricing a severe earnings recession to come in some of these equities? I mean I think we were Minus 15% PERCENT earnings grade four CARDINAL starting to get priced in and been able to have this rally over the course of the past few weeks DATE and a lot of that negativity has got priced out and as part of why you know we think there's more chance that we see downside in the near term then upside that summer back concern about growth doesn't need to come The price and before they look more appealing on a tactical basis and out of you. Hi Barry PERSON show you for Jackson Hole FAC we've got the whole world shooting euro dollar shorting software and that that there's anaphylactic shock at the short end of the curve I use fixation Well, in in some ways, the Fed ORG pouring a bit of cold water on this pivot story within could be, could be actually an important factor for the market because one of the key risks that we've been looking at for is this idea that Inflation does fall in the near term because of lower commodity prices and the COVID supply chain issues unwinding and then too many investors get sucked into this rally in believing the story that you know information is now on the constant downward path perhaps even the fed ORG gets soaked into it and then we have a issue mostly during the year perhaps when because How crisis in Europe LOC or yeah other issues wage stickiness inflation surprises to the outside and then you get the pivot that would be much worse so no perhaps it's not the worst thing in the world if the feds pause a bit of cold water from the pivot story at Jackson Hill GPE this week DATE . Alright you destroying me here and just daddy's gonna say thank you but can I just say for the record I'm one of the ages that got sucked in I got in the car every day July DATE and August DATE like We can open up the pension statement not anymore. I was gonna say Karen PERSON I'm only thinking you because you know it's a lot of doom and gloom but it's really great to have you.

Not anymore. Leave it there. Gonna say Karen PERSON I'm only thinking you because you know it's a lot of doom and gloom but it's really great to have you Karen Global PERSON wealth management. Hey, maybe we'll end here with something to look forward to. If you've got dollars and you wanna buy a house in the Hampton LOC Now my beer time people selling houses there slashing prices or discuss that a bit next. This is Bloomberg PERSON . When I started I had no idea it was gonna turn into this. Empire. I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Velocity Danny. Velocity. From UBS ORG 's a call Yeah 95 CARDINAL from UBS ORG seeing some other ones maybe not as dramatic 97 CARDINAL but we're just hearing from Kieran Ganache PERSON 95 as possible manus we're looking at steady declines in the euro this morning TIME down 2 tons QUANTITY of a Treating at 99 21 DATE the drama continues madness even in this low liquidity period. Yeah let's get across to Jim PERSON 's we'll come back to the boards in just a moment Jules ORG has got Juliet Sally's PERSON in Singapore GPE with the first ORDINAL word news jewels Matters the US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE . This after president of Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dastardly crime. Ukraine GPE is preparing to celebrate independence day on Wednesday which March 6 months DATE since Russia GPE 's invasion To Anthony Fauci PERSON who became a household name during the pandemic is just stepped down at the end of the year DATE the top US GPE infectious disease expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease outbreak since the HIV crisis the 81 year old DATE says he's leading The next chapter of his career. British Airways ORG says it is scrapping 5000 return flights in the coming months DATE this after cancelling about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curb curves that it's London Heathrow FAC Hub BA says passengers who've been affected can read

Answering about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curb curves that it's London Heathrow FAC Hub BA says passengers who've been affected can rebook alternative flights or seek refunds. Global news 24 hours TIME a day manners Danny Jill PERSON If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this and why I'm This trend is coming. It's not going to stop. Cryptocurrency version of Silicon Valley LOC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. It's a really a reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse This is Bloomberg J. B. European Dubai PERSON . Danny Burger PERSON alongside me at London GPE HQ with the stories that set your agenda. Crisis compounded European NORP gas prices continue to search ahead of another Looks GPE to Canada GPE and search of alternatives. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never Infrastructure ORG has been built in Germany GPE and that is short time. Hello parody recession fears and winter DATE warnings push the euro down to a two decade DATE low concerns grow a further declines. Cut production to curb recent price drops. Man, it's good morning to you. It continues to be the euro taking another leg lower this morning TIME as In Europe LOC is top of everyone's minds. And no central banks to be able to save the currency whether it's sterling Or the euro and it is ultimately no exhaustion in the dollar. I like what Jordan Rochester PERSON has said. Focus in on your dollar. This is the fourth day in a row DATE you've seen the Euro dollar Two CARDINAL . Five% subparity. How much deeper will it go? 95 CARDINAL say UBS ORG . The FX ORG market is missed pricing. The energy crisis. Those are the words of Nomora GPE 's Jordan Rochester PERSON who calls your dollar down to 95 CARDINAL cable. Even You're looking at the lowest price since March 2020 DATE inflation priced at 13% PERCENT and you're looking at the central bank pricing in 230 CARDINAL basis points of height even that This is a dollar story as well.

Since March 2020 DATE inflation priced at 13% PERCENT and you're looking at a central bank pricing in 230 CARDINAL basis points of heights even that can't save starting this is a dollar As well as an energy crisis and economic vortex above Europe LOC and the United Kingdom GPE find themselves in oil whether you're gonna build a floor get royalty to the front door that's what they say is Royal Highness ORG prince of dollars is Production saves all Danny. Minutes I'm gonna be pretty quick here with this equity check because I think what you're showing there it's what's moving these markets it's the deterioration in the euro in a pounds Moving equities we are now seeing some pre substantial losses here down to tense of one% ORG for this feature session. Yeah I didn't take long to kill off the summer of love and use above three% of course on seating the technology rally to the German NORP Parish NORP she's searching above € 700 MONEY a mega After the first ORDINAL time as Marcus NORP panic quite literally panic over the country's dependence on Russian NORP energy supplies the chance that as we just turn a dollar Schultz is in Canada GPE part of the push to find the alternative resources to gas emphasizing that his government Working hard to end the dependence on rushing gas. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible Never such an infrastructure has been built in Germany GPE and that is short time. Easing Processes ORG because of the difficulty that that Germany GPE is facing to make sure that we can move through regulatory hurdles more quickly is something we're willing to do but there needs to be a business case it needs to make sense Let's get to our correspondent Inberlin PERSON it is Burger Yan Bergert PERSON the scale of the crisis is laid by in the market in terms of energy prices electricity prices how palpable is it at home in Germany GPE where you are how real Is the energy crisis? Well I think at the moment people are just sort of getting by I mean the people are cutting back a little bit on their own consumption also actually with lightening with heatening up the the water basically But really people haven't yet hit the the real effect it can have if gas is going to be cut further back so that we will have to see may the government Working GPE really hard to make sure that during the winter time people basically can still heat their homes and that industry at the same time can continue to produce but for that they really need to stock up They are they are their gas storage and and they also need to make some other changes and and in order to fill the gaps so therefore there are for example looking at keeping nuclear plants working but really when we talk to the government they say maybe we're gonna get through this winter DATE but really the next winter when the store just are then really empty That will be a problem A burger, you know, in terms of the government reaction here. You're talking about, you know, dealing with industry but government reaction, politics when it comes to dealing with people who are not gonna be pork 'cuz they're paying more for Potentially dealing with people who are having rolling blackouts what is fiscal policy going to do when it comes to addressing these sorts of issues That's a very good question. So far the finance minister Linda PERSON is saying we can do this all without actually losing the constitutional deathbreak and actually keeping to the strict limit Of keeping a debt under control but really one has to see what this going to happen when really during the winter people will feel the extra cost in their bill and all with this late lava so therefore we have to How was the discussion is going? I think, you know, a lint not also doesn't want to be seen as moving too quickly into a further expansionary policies. So, therefore that he is holding up but the pressure is clearly building up because the government is also currently thinking of another package of measures. Really we do wonder how is this is going to be financed In terms of

Also currently thinking of another package of measures. So really we do wonder how is this is going to be financed? In terms of energy rationing that's part of the debate nuclear as part of the debate coal reigniting coal are all on the table what is the Toxic ORG policy Chancellor to pursue Lit king survive. The thing is it's it has to be a mixture of everything. I mean, they they need on the one hand, they need to make sure what I said before that the energy supply is sort of maintenance and that the economy continues to run. So, that Crucial in order to for the government and for the mood in Germany GPE not to switch so there is already now a risk and we do see if people becoming a frustrated windshaws is going especially to eastern Germany GPE there are already some kind of unrest or at least protests And that I'm also his own party is going to be continue to back in because once he is losing popular His own party will also increase pressure and then In this three CARDINAL party coalition will become more difficult Alright Burgutt thank you very much Bloomberg PERSON 's Burnett Burgutt Yenen PERSON throughout the morning TIME helping us with this story let's get into it more fun a bowl head of commodities at S and P Dow Jones ORG indeceased joints now and and Fiona PERSON burget there The political story and I love what you write in your notes that natural gas now rivals oil as the commodity shaping geopolitics given the pressure that politicians are feeling with this crisis Folding WORK_OF_ART . Are you seeing mistakes being made with how we're addressing the energy crisis right now? I think we're, you know, if you're a politician today DATE , if you're an energy minister today DATE , you probably got one of the toughest jobs going around and it's certainly One that that I'd like to take on your as as you've been talking about this morning you know Germany GPE has built up if we use Germany GPE as an example has built up dependency on Russia GPE over decades DATE and is now trying to switch that within a matter of months DATE and some of the alternatives Have over the short or the medium term I relatively unpalatable be that coal or a Tommy Kennedy PERSON so they've got a really tough gig Fiona PERSON always good to get you on this show so here we are record prices 1 year DATE forward in France GPE and Germany GPE everybody saying oh it it's getting worse but have we even begun to extrapulate where Russia GPE switches off the tabs Before the end of the year DATE . Well, Russia GPE has weaponized energy. They still have the option to to Genuinely extra Reopen the real weaponization of oil and gas before the sanctions kick in at Christmas DATE . I think history would tell us that markets rarely price in the worst case scenario. So, that is something certainly to consider. Now, you know, we have seen them turn off the taps on and off. We'd see that they're turning off North Streams LOC to again for At the end of the month DATE . But are you maybe the market is not at yet pricing you know a worst case scenario? Fiona PERSON , what's it gonna take for us to price that worst case scenario? What's the catalyst going to be? I think the catalyst will unfortunately be the action which is the cutting off your while while there is still some gas flowing while Europe LOC is still buying some Russian NORP oil you know mark it participants have some pope that We'll get through this winter DATE . I now becoming increasingly concerned about next winter DATE and the winter after that and I think that that may be the catalyst when that expectation that this is not a short-term event becomes more prevalent in the market. Fiona PERSON I'm furiously looking up my ticker for cold You know if I take my mind back to the last cop

So put us again in a in a really difficult position Verna GPE you know I I'm thinking about the volatility we've seen it in trading really a cross commodities be it be it oil be it the energy story and the fact that it's happening in August DATE the summer DATE Everybody's ORG away Happens PERSON when everyone gets back to their desks Fiona PERSON what does trading look like after the summer DATE ? We've definitely seen the oil market you know in in Anything GPE increase in volatility and I think some of that comes from the fact that trading volumes are low. I think trading volumes are low though not just because all of those all traders are in the south of France GPE or the Hamptons. I think it's because there's general uncertainty about where prices are going. And that sort of con Between, yeah, we do have still a very tight global oil market. But that's against the backdrop of, you know, high US dollar, increasing interest rates, and growing concern about about economic slowdown. So, I'm not sure even when those all traders come back Holidays whether that In these markets will pick back up Come on Fiona night they're all traded from Laval Rouge ORG eh in the south of France GPE they have they haven't stopped trading ehm they just have another large glass of eh whatever does it get through the vault speaking of which Extreme volatility there's a disconnect between the futures and the physical secretary general tells me it's mighty tight I love it there's just a sketch of freenia Not in my mind but in the oil market. So, High disconnected are the futures to the physical tightness. Look I always think futures markets do a good job of representing what's happening in the physical market I think they can be short periods Time ORG where maybe there is a slight disconnect but as I said I think the mark the oil market today DATE the oil drivities market today DATE is is telling us that there's massive uncertainty and that there is no yet no consensus around your what's happening in terms of tight supply versus how much demand I'm off. So, I think the markets are doing their job. And Hey Facebook Do you think is right do you think ABS is flying not quite about schizophre Is that a smoke screen for him to cut to hit to make room for a ram? Do you think that's what he's doing? Kite flying? I mean he he certainly talking you don't book and you know I know it's important to note that that OPAC ORG is not currently meeting it's target production so I'm not sure at the end of the day DATE even if there was an announcement of a cut what that would actually mean for the physical market it may mean we don't see Much changed because they're already, you know, not reaching their current targets. Thank you very much. Punch in a line though if you wanna bowl head of commodities and S and P by Jones PERSON . Coming up in the show with Danny PERSON and myself Brace, Brace, Brace ORG , the PMIs are heading the slade in just under 20 minutes TIME . A perfect storm. Rocketing inflation, slowing growth, gathering pace Another quarter CARDINAL of one% ORG this Tuesday DATE morning TIME on Bloomberg GPE . China GPE 's appetite for energy is enormous. The country consumes about a

China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. China GPE is the world's largest greenhouse gasimater. There is no way to tackle climate change unless China GPE reduces its emissions to NZ GPE . The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hump All this has led the world's biggest polluter to take steps towards a radical transformation. Are we in some sort of calculation fears moment people are talking about that all day DATE yesterday DATE It's take break your appointment screening in Dubai GPE Danny Burger PERSON alongside me in London GPE let's get a business flash headlines from around the world Judith Sally's PERSON with us in Singapore GPE . Matt PERSON I see you on Moscato PRODUCT his long time friend former Twitter PERSON CEO Jack Dorsey PERSON and his legal battle with the social media giant Mask PERSON is seeking to collect documents and data to show that Twitter PRODUCT understated how It's customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of the expedited trial in October DATE . Forward is cutting 3000 CARDINAL jobs this week DATE to fund its shift towards electric vehicles. The cuts will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . CEO Jim Farley PERSON has repeatedly said the company has Workers Ford ORG wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year DATE by 2026 DATE . Zoom shares feeling US GPE late trade after it projected sales and profit for the current quarter DATE below estimates it says annual DATE sales growing to about $four MONEY . 4 billion CARDINAL down from its projection in May DATE of as much as four CARDINAL . 55 billion zooms pandemic boom has called considerably as officers reopen and competition in From Microsoft Teams FAC and that is your Bloomberg GPE business flash Danny. George PERSON thanks so much Julie PERSON and Sally PERSON there in Singapore GPE and we got a slew of European NORP PMIs this morning for August DATE they're gonna provide more insight into the challenges facing the euro area economy throwing energy cost And rest for more we're joined now by David Powell PERSON senior girl area economist for Bloomberg Economics David ORG how should we be viewing the PMI ORG 's we get this morning TIME considering that there's a big odd for more deterioration for the months DATE coming How much they slide from the readings we saw in July DATE so in July DATE the number for the the composite number was already in negative territory signaling that the economy was contracting and that was led by difficulty in the manufacturing sector so we Did that get a lot worse in August DATE and that will give us a sense of of what businesses are trying to contend with right now as those energy prices sore and is the threat of Russia GPE cutting off the gas moons. David the debate is is where we are with inflation. If we look at the energy narrative and energy inflation is up some 40 CARDINAL year% on year DATE . I think Valerie Queen PERSON of Chance has a chart on that which we can have a look at. It is becoming on board it is becoming on tethered you can no longer just say it's AA temporary drift hire Yeah and the problem is it's not just energies so we're seeing higher prices price increase

A temporary drift hire Yeah and the problem is it's not just energy so we're seeing higher prices or price increases in the cost of food which is also a result of the war in Ukraine GPE and we're also seeing that broadening out to most of the goods in the basket of the basket That's used to calculate inflation, the goods and the services. So essentially it's becoming more widespread. And not only are we worried about the actual inflation numbers but also we're seeing signs of life in in waging creases and that that is a signal of further inflation down When when it comes to sort of inflation expectations getting in French LANGUAGE I wonder what fiscal policy does to exacerbate this or make this better Bloomberg PERSON has a story a scoop of What happens if if there are more government subsidies to to help folks you know pay out for what's gonna be much more expensive Will the economy is already operating at capacity I'm in the UK GPE Which is very very tight unemployment at a very low level and that's also the case of urine unemployments at a 40 year low. And so essentially if there were more stimulus from the government that would stoke inflationary pressures because because Is already operating at capacity. I think the the the best way to to think about the physical spending is to target those most in needs. So you don't want kind of just broad giveaways to everyone. But the most vulnerable in society. Which is really what actually sent for banks have been saying ECB ORG 's been saying we need to target these subsidies so those most in need get But we we can't have this huge stimulus package that's more broad based. David thank you so much David Powell PERSON setting the store for the PMIs which will hit the tape shortly we'll bring that to you our senior euro area economist four CARDINAL Bloomberg PERSON economics coming up Under pressure. Hey use fail to save the point we talk FX ORG on Bloomberg PERSON . Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semiconductor industry overall Estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that need. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG .

It's Bloomberg Daybreak PERSON Have a look at this 2 years DATE we've show Couple of times is this week Danny the pine's still getting crushed on the crosses and on the outright against the triumphant dollar this is what the mark of things is gonna happen to 2 year use so we've got this move and by the way 231 CARDINAL basis points of hikes are priced in for by May of next year DATE and still the point And this FX ORG narrative Danny is pervasive isn't it this morning TIME ? Hey it certainly is it leads to a lot of people saying quite chickly that you know pound and euro trading like an EM currency that even the rate spread isn't helping to lift them as 18% PERCENT inflation in the UK GPE is what they're predicting if we get a gas crisis so this is inflation being priced into those yields man is what ECB what can a beer we do to curb inflation if it's coming from a gas crisis? There's a lovely line in the piece by Jordan Rochester PERSON . I mean, he'll get more, he'll get more Twitter PERSON followers than both of us put together in one CARDINAL stick this morning TIME but the bottom line for him is that the FX ORG market FX ORG is underpricing he surprised that it's not a more aggressive slump in the or there it is on the cross as Da Yep you're a falling virtually against everything Rochester PERSON saying that look we've been focusing too much perhaps on that towel narrative but manus markets certainly alive and awake to the issue when it comes to European NORP recession more market Text this is blue bird. Nurturing also can come from men and it's one of the qualities I guess that you found in your mentors that also pushed you up. Do we need even more monitoring post pandemic? Is there is the way that we, you know, talk with employees going to change? I think talent becomes a single Different shape of a successful entity versus an answer So you gotta do everything possible to hire Put your arms around talent. Show them that they have a upward mobility and can make even more money and that's the only reason people come to work. I think post pandemic. I have to worry about me as a person. I have to worry about my family. I wanna worry about my well being. My mental health. So we've got to start Which means that we have to engage with that head art and hands not just head and hands the heart has been engaged so we have to be so more empathy show show that we share that your The community, the members of the family, and all of those have to come into consideration as we

Citizen to the community the members of a family and all of those have to come into consideration as we help an executive employee Community ORG and the family. Hey Facebook Blueberries. Bloomberg PERSON technology. Good morning TIME welcome to Bloomberg Market so you're reply manner Edwards ORG live in London Mark ORG have more our markets live managing editor joins us from Singapore GPE to take us through all of the market action this hour TIME the cash trade is just less than an hour TIME away so here Top headlines. The next test euro area PM eyes Global stocks continue that move lower after equities saw their worst route in 2 months DATE European NORP and US GPE features dip plus Opec on alert crew prices pair losses after Warns the alliance could cut production to curb recent price drops Here in London GPE . Good morning TIME . What are the Saying LOC to you. Good morning I know what it feels very similar to the last couple of sessions and I'm afraid that's not particularly good news we've seen that general kind of risk a version again we're seeing concern about the European NORP crisis we're seeing this idea of generally higher yields over the last 24 hours TIME it's not really a changing theme unfortunately it's a negative theme though It isn't negative theme. Let's dive into some of the detail there. We're just under an hour TIME away from the starts of cash equities trading in Europe LOC and it doesn't seem as if we've got an end to that Perhaps expected to fair a little worse which might be a surprise given we are seeing that rebounding oil prices coming through a little 97 oh two is when we trade on Brent's ORG in terms of where we were yesterday DATE we dropped more than two% ORG on the German NORP Benchmark the dacks of course we drop more than two% ORG on the Nasdaq and the S and P so there was broad based weakness during yesterday DATE 's session this is the future's picture for Europe LOC then for this morning US GPE features also looking flat to negative Hiring GPE . The European NORP energy story and all of that adding up to something that looks pretty negative than Mark PERSON . What does it look like on the GMM ORG ? Well, actually all those US GPE features, they were in the green most of the morning. There's only a couple of hours ago. They suddenly went red but we are seeing that general theme of risk conversion across the board. Nothing too extreme. Probably most interesting is the FX ORG collar. That's where we're really the attention is this week DATE with the Euro PERSON dollar sloping blow party. It's a sterling in free falls. Well, a general dollar strength. The Bloomberg PERSON dollar Getting close that record high again and we're seeing that very much in the theme across the board today DATE . And that underlying theme is very valid. There's a chance in fact that I could accelerate at some Soon. And of course going into that is the idea of higher yields across the board. Lower stocks, general risk conversion. Commodities been a bit more mixed. Oil has been today DATE . Doesn't show up because I had such volatility earlier on this year DATE that A really big move to move to command to this screen but oil's a little bit higher and that's providing another little kind of buffer for a commodities generally. Okay so a bit more mix on the corners he's front Mark PERSON let's talk about the markets then in 3 minutes TIME and I want More than two% ORG on some of these major markets but there there's been talk chatter in Hong Kong GPE about maybe tweaking some of the quarantine rules that doesn't seem to be lifting stocks. All that much. What do you think it is that's weighing on the Asia LOC sentiment? Is it all Chinese NORP growth. What's interesting is there's not just one CARDINAL single drivers. There's just this pervading negativity out there. I think probably the biggest Issue four Market.

What's interesting is there's not just one CARDINAL single drivers. There's just this pervading negativity out there. I think probably the biggest You four CARDINAL markets at the moment is the European NORP energy crisis and that still feels underpriced in European NORP assets particularly European NORP stocks but that is one CARDINAL kind of market that's dragged down and that is of course European NORP Is one CARDINAL of the kind of three CARDINAL big pillars of the world economy. So, that's a really big issue. Then, the US GPE , people are specifically worried about the event risk of Jackson Hole GPE . It's a little bit more new The medium term as you know I'm very firmly in the kind of bearish camp for stocks over the next 6 months DATE over the next year DATE but I don't have a particularly you know worry about the next week but I think because of Jackson Hall FAC people are trading that medium term negativity more aggressively and then of course when you come to China GPE not only has the data Terrible I think that's not the surprising bit it's the fact that that the PBSC and the government all their measures have failed to stimulate any sort of rebound and Anna say this Who is in the camp of expecting quite negative Chinese NORP growth this year DATE but I thought that accidents would be propped up by the policy moves and that is just Happened? And what you call the underpricing of the energy risks at Maybe this is underpricing Effects. Below parity. It dropped back down below that to get today DATE . Oh spot 9921 is where we trade. But you think actually there's more room to move on stocks. So I I look I'm I'm very embarrassed you're a star I still think Giro PERSON has much more downside and I have a lot of symptoms in the mirror of you and look I'm a macro guy which means Think of Barnes and FX ORG before I kind of go to stock markets as my default but I think from here that it's it's the risk reward idea the euro has a lot more downside but they're gonna be really big squeezes. We know that the market is generally very long dollars. They are short euros. It's a consensus Of you and also the yield story here is more complicated cuz what we're facing is a major inflation crisis and yes it's a supply site inflation problem Two CARDINAL aggressively but they still need to stop that inflation feed into inflation expectations and changing the game so ultimately we're gonna have squeezes where yield suddenly go higher that makes the euro move more complicated where it's just unembiguously bad for European NORP stocks over the next 6 months DATE Okay and you're pretty glimmy about socks more generally I was reading your macro view very depressing as it was I mean if for anybody longest stocks it might be a depressing read Mark PERSON but I wanted to mention that the Stanford University ORG economics John Taylor PERSON says there's still time to nip inflation in the bud his words and to avoid a recession you'd very much don't see it that way. So he said we need to get rates to five% which remember is about 100 CARDINAL basis points above what we're pricing in the market Already scared the market. So, I think if we get his policy action, we'll get a real big collapse in stocks anyway and I do think it will cause probably a session but maybe a softer one if we're active proactive Okay Mark PERSON thanks for those thoughts remember you can get up to date to analysis from Mark PERSON and the rest of the markets live team MLIVO is the function to use on your terminal let us get a Bloom Bay first wave Morning Alice FAC how do you Says Opec and his allies may be forced to cut output as the future market has become increasingly disconnected from fundamentals. Prince Abdulazi GPE 's been Solomon told Bloomberg PERSON harmful volatility is disturbing the basic functions of the market. Opec ORG plus meets next month DATE to consider production target Justin Trudeau PERSON says Canada GPE would be willing to consider easing the regulatory burden on new gas export facilities to Europe LOC but warns the business case must be made first ORDINAL speaking at a Conference with Germany GPE 's oh Love Schultz a Canadian PM WORK_OF_ART said the challenge is that any new gas terminals in Canada GPE 's eastern shore would be far from its western gas fields The US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE . This after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote Dartedly crime. Ukraine GPE is preparing to celebrate independence day on Wednesday DATE which also marks 6 months DATE since Russia GPE 's invasion. British Airways ORG says it's wrapping about 5000 return flights in the coming months DATE that's after cancelling about 13% PERCENT of its summer DATE schedule due to a staffing shortage and extended capacity curbs at London Heathrow FAC Hub BA says passengers who've been affected

Cancelling about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curves at its London Heathrow ORG hub BA ORG says passengers who've been affected can rebook alternative flights or seat refunds. And Doctor Anthony Fauci PERSON who became a household name during the pandemic is to step down at the end of the year DATE . The top US GPE infectious disease expert has run the national institute ORG And infectious diseases since 1984 DATE . Advising seven CARDINAL pace seven CARDINAL presidents on every major infectious disease outbreaks since the HIV crisis. The 81 year old DATE says he is leaving to pursue the next chapter of his career. Global news 24 hours TIME a day on air no Bloomberg PERSON quick take pub by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bloomberg Anna Alice PERSON thanks very much Alice Atkins PERSON here in London GPE Up on the program we'll get back to the energy story more on that oil story and facts our Saudi Arabia GPE warns volatility in the oil market may force opac plus to cut output we will get the latest on energy plus China GPE Up next though Euro woes the common currency fell to a new two decade DATE low we haven't been as low as 2002 and could suffer even more we will Strategy. If you have any questions, you want us to put to our guests, please do get in touch. IB plus TV goes to function to do that on your blue bag. This is bling bag. When I started I had no idea it was gonna turn into this. Empire. I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand It has been mostly a dollar story Europe LOC hasn't under performed as much as I think it should I think the the FX ORG market is totally missed pricing the situation you're the situation is a complete rethink of the economic model in the euros zone and I'm just it is struggle it's strange for all of us to see the euro selling off so slowly I In the next few months DATE John Rochester PERSON there in the mirror is G 10 CARDINAL FX ORG strategist on the perfect storm that's engulfing the euro at the moment the Euro Strategist say the drop is just the beginning of a deeper descent for the currency we heard Jordan PERSON making that point just there let's get another perspective Chris Turner PERSON joins us IG

Strategist say the drop is just the beginning of a deeper descent for the currency we heard Jordan PERSON making that point just there let's get another perspective Chris Turner PERSON joins us I and G head of FX ORG strategy at Chris PERSON good morning TIME to you We have to ask how low does it go? We are now back below parity. We heard Jordan giving his view there. What are your thoughts on how how low it goes and how quickly I suppose Points. Yeah, I think right at the moment now DATE , we're really sort of in this sort of male strom really of this sort of energy crisis in Europe LOC and I think it's Jordan PERSON mentioned as well so there's reassessment of European NORP Lot of particularly the German NORP business model importing cheap energy taking advantage of globalization adding value and exporting products around the world. We've seen the German NORP trade surplus so it'll be wiped out which is you know a full reassessment of that European NORP kind of business model. In light of that it's unsurprising to see kinda GPE year down here at Party ORG and I wouldn't disagree with the kind of levels that kinda Jordan GPE mentioned there so I think one of the key things we're telling customers is that if you see your daughter and you think it looks super But actually the fair value of Euro has been damaged by this energy crisis and maybe you can't rule out it moving, you know, another 10 CARDINAL big figures, lowest from here. Yeah, and by that reassessment of the growth model that you just tried, Chris PERSON . Jumping. Yeah Chris PERSON one of the things I'm curious about is you just mentioned that at the end it's about the idea we could suddenly go to the 10 CARDINAL big figure See me this year DATE has been uptick in volatility. Trends going further, moves going slightly further. I guess what I'm curious about is given the positioning in dollar. Is a bearish year of you? Is it still best to play it versus the Or is there are we approaching the time when you wanna start playing up versus some of the currency? Hey we're just hearing you in the early a segment mark being sort of very negative in terms of the the global growth environment and kinda exit that equities so yeah I'd say probably still against the dill I think you'd really sort of back with Jackson Holland GPE Friday DATE and I think we are in a slate stage of a kind of US GPE business cycle. Traditionally so positive for the dollar against particularly the activity currencies as well and given what's going on in Europe LOC as well I think You play week a year I think versus a dollar given AA quite a difficult trading environment over the next 3 to 6 months DATE People have been talking about how surging yields in the Eurosone ORG . I have failed to show up currencies. I mean, I know Mark PERSON 's got some thoughts on real deals which will get to you later and that The whole explanation. Don't necessarily understand yet how to trade this. They don't know whether to, you know, be buying bonds because of risk of version or selling bonds cuz you're concerned about what physical authorities might do, how much money they might be giving away. There anything that can sure up the euro in the face of these challenges Yeah you would have thought the so I suppose ECB and we've heard the comments from Isbell ORG last week DATE that this year dollar client decline is unwelcome it's an energy price shock it's a dollar shock really impacting the years DATE in terms of trade so negative income shock which is Clearly so weighing on the euro here and to try and get the euro higher from here I mean obviously it seems I likely that the gas store is gonna turn around or the energy crisis is gonna resolve itself very quickly you'd have to expect a far more aggressive In terms of what they're prepared to do with canopy rates but I think we at ING think that we will just have 150 CARDINAL basis point further rate height from the east to be in September DATE then that will be it for the cycle so the market is pricing about 125 we think they're only gonna deliver 50 and you can probably conclude that's not a particularly a positive outlet for the year end DATE in that environment Chris PERSON we're picking on the euro quite significantly this morning TIME but of course there's another basket case currently in the region and that is the pound. You're a sterling. Which side of the range does it break first ORDINAL ? We're right in the middle of the 1 year range. 82 Seven CARDINAL . We're right in the middle of that right now. Which side does it break first ORDINAL ? I've got us a slightly a view that's against the market here where I think Sterling ORG can actually hold up better than most people think. Obviously, quite negative grace environment. You know, Entering several quarters CARDINAL of recession with the Bank of England ORG kinda tightening so very kinda GPE inverted curves coming up but I think guilt investors and what they're gonna do with their H ratios particularly when you've got short end rates going well above two% Bank ORG finger being quite aggressive. I think it's gonna be difficult for them to have high effects head ratios and they guilt holding. So I think actually the bond portfolio manager

You're being quite aggressive. I think it's gonna be difficult for them to have high effects ratios and they're guilt holding. So I think actually the bond portfolio managers reducing their head ratios on guilt could be one CARDINAL thing that prevents a pound from from your sterling for example breaking well up of 85 CARDINAL . So I think perhaps we do go back down to Or so. Okay and how much does that rely on the Bank of England ORG being able to deliver more rate hikes because there doesn't be a nervousness as some quarters that their ability to do that might be limited. Yeah. Very much so I'd say that's the key thing you know there'd be anything kind of affecting the pandemic. Yeah. Yes so I think definitely for the bank of England they will have to deliver probably another 50 CARDINAL basis points in September DATE and you know so much is pricing to next year DATE rates at three and a half percent DATE we think they can get nowhere near there but probably they'll talk hawkishly as a shirt at this stage and the cycle with the inflation hump into the rest of this year DATE and I think as I say I think Keep the pound relatively support against a euro but obviously the dollar will be king in the current environment. Okay, we'll talk about that more in a moment. Chris PERSON , thanks very much. Christina, I and she's head of FX ORG strategy stays with us. Coming up will be taking you through the key events in the diary for today DATE including day two DATE Daughter ORG 's trip to Canada GPE the German NORP chancellor was there talking energy of course that's up It's just been back. Economic policy symposium Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it And our point was Wyoming GPE can beat that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this and why I'm This trend is coming. It's not going to stop. Is more of a small town that's growing into without a call that cryptocurrency version of Silicon Valley LOC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. Welcome back to Binberg Market Europe a week DATE out for 40 minutes TIME still to go until the start of cash out when he's trading this is what the European NORP future's picture looks like right now She's deteriorated quite a bit. I should say US GPE features now Nasa ORG features down half a percent PERCENT emails down three tenths of a percent CARDINAL now this morning TIME we'll have PMI ORG 's coming through in

Half a percent Three tenths of a percent QUANTITY . Now this morning TIME we'll have PMI ORG 's coming through in Europe LOC . So let's get a rundown of what to expect. Beginning with France GPE and Germany GPE at 8:30 AM TIME : at London GPE time. Followed by the wider euros zone PMI ORG number. That's Continues with In Milan GPE at 3 PM TIME after the US GPE markets open we'll get new house sales data from the United States GPE painting a clearer picture perhaps of the state of the US GPE economy in the last month DATE and the effect of higher interest rates on mortgages of course else In the US GPE primaries elections in Florida GPE and in New York GPE are taking place where two CARDINAL long serving democratic lawmakers Jerry Nabla PERSON and Carolyn Maloney PERSON face off in Manhattan GPE 's region Later tonight TIME we'll hear from Minneapolis Fed ORG President Neil Kashkari PERSON as he speaks at a Q&A session at the Warton Minnesota Alumni Club FAC finally German NORP chancellor Olaf Will PERSON share a platform once again with the Canadian NORP president just in Trudeau PERSON at the Canadian NORP Prime Minister sorry Justin Trudeau PERSON on day two DATE of his 3 day DATE visit the focuses energy of course with Looking to diverseify Germany GPE 's energy supply. Mark, this seems to be a lot going on. I seem to have read a lot of words at least. There's a lot of data and we're working our way towards the Jackson Hall FAC . What's gonna be your focus? That there is a lot going on. It's actually a much more exciting day than people think. We're not just drifting to Jackson Hall FAC . Markets are getting very interesting again. I think you know, summer is ended a little bit early. Those years and PMIs, absolutely in focus, given the nega Around Europe LOC . Care about because he was such a dove and he's kinda switched so aggressively. So, maybe they are the two CARDINAL highlights. Home sales as well, they're also catches my eye. Okay yeah absolutely an arising based environment let's get back to Chris Turner PERSON bring him back into the conversation I and she's had a rare fake strategy and Chris PERSON we mentioned strong The weakness in the euro where do you think the dollar heads through all of these challenges this week DATE are we just set course for Yeah well it's all ready you know very strong and I think it probably stays pretty well supported near the highs I think one of the important running to Jackson PERSON High I think one of the important takeaways from last week's DATE fed ORG minutes TIME that released from the July DATE F oneC meeting was they kinda welcome the strong dollar in terms of in helping to suppress imported inflation so no signs as yet Strong dollar was cool to get any problem to the fed ORG . They cited wider, yield differentials as a fact to drive in kind of year a dollar lower. So, you know, I think that kinda combination as Mark PERSON mentioned Neil Caskari PERSON now Super Hawk. I think yeah, I think the dollar will stay pretty much near. It's kinda It's quite interesting the type of price actually we're seeing right Friday DATE it wasn't a particularly busy day for like events but the dollar just stayed bid and you're done just stayed up first I think it is. Yeah. Yeah. Chris PERSON , in a strong dollar environment, higher yields, lower stocks, it does not sound very friendly for emerging market currencies, which is the most vulnerable ones. Yeah and as usual the Reminbi PERSON can set the tone for emerging market currencies in in general not only in Asia LOC but also the commodity As well. That's a very much gonna trade off of kind of Chinese NORP growth prospects. So, if we start with a remainder, I mean, this week DATE , dollar CNH ORG . So, the offshore remember, it's traded up through 684 CARDINAL which was a big level of peak we saw earlier in the year DATE I think people were That China GPE is allowing kind of evaluation that we saw in April DATE or May DATE which took emerging market currency in general a week across the board so I think and a big surprise yesterday dollar career trading up to like 13 30 DATE even though the the central bank ORG would like I think Some of the big commodity exporters and maybe like places like Chili PERSON as well which is really committed to spending a big chunk of its effects reserves to support the pacer until the end of That's gonna be quite a difficult challenge for them. Hmm so so they're quite vulnerable are they given the the rising dollar environment and the commitments they've made? Any other emerging markets in that basket then Chris PERSON ? Let's say like the Rams PERSON as well. There's real so benchmark for emerging market kind of currents is in general and can the week of Chinese NORP growth prospects. So we've seen that the Really kind of flying around and you know it's briefly it was trading under 16 only a few weeks ago DATE

And can the week DATE of Chinese NORP gross prospects so we've seen that the round really kind of flying around and you know it's briefly it was trading under 16 only a few weeks ago DATE it's now over kinda 17 and you know Could easily trade so we're 18 CARDINAL over the next 2 or 3 weeks DATE if the dollar just stays strong as we think. Chris PERSON we've all we always like picking on the run in a strong dollar high yield environment I guess I'm gonna switch back to G 10 for one CARDINAL final one that's very binary at the moment the yen dollar yen MONEY was the big trade of the first ORDINAL part of this year DATE now I know People are again fighting the idea of a short yen and they're kinda saying in an environment where stocks are in a week DATE we're heading towards a recession yen won't fall much further what's your view is the dollar yen trade still good? Yeah I think it probably is I mean terms of trade I think as you mentioned earlier like gas prices really sort of dominating in with I'm spending every day DATE looking what's happening to the terms of trade a place like the EuroZone ORG and Japan GPE that continuing to decline so With a strong dollar and this terms of trade story really dominating effects at the moment Very difficult to try and play against her even if you say you might try and pick out a long yen on the cross for kind of to play the we correct environment but overall I think Dolly and stays bit and yeah we could move up to 140 CARDINAL . Okay so Dollyanne PERSON moved to the dollar move and a bit of yen weakness maybe. Chris PERSON thanks very much. Thanks for joining us. This Morning Kristana WORK_OF_ART . Coming up on the program a Chinese NORP banks are employing unusual practices to inflate their loan volumes will delve into this fascinating story about what the Chinese NORP data on the level of lending really needs we'll get some analysis this is bling back Apple ORG has identified it's next big business bringing advertisements to more parts of your iPhone ORG . Today DATE Apple ORG pushes ads in three CARDINAL places the App Store Apple News ORG and the Stocks app In the news in stocks apps Apple ORG shows display advertisements That means that third ORDINAL party companies like car dealerships or mortgage lenders can showcase their advertisements just like they can on a website. On the App Store FAC , the situation is different. There, Apple ORG has search ads. This allows developers to buy their way and destroying a pire on search results. For instance, an app store developer can bid for the term car racing or basketball. So, their apps would surface above competing apps in the list of results. Apples The ads is a little ironic given that it's ATT ORG or app tracking transparency privacy feature limits the ability for meta snap and even smaller developers to generate as much revenue as possible for advertising that's because the feature allows users to choose if they want their data collected and tracked across third ORDINAL party apps and website Still apples hoping to expand its own ads business and is planning to add search ads to its maps app other areas where ads could eventually appear or an Apple ORG books and Apple ORG podcasts along maybe 1 day DATE with an ad supported tier of Apple TV Plus ORG to compete with new offerings from Netflix GPE and other streaming video This is power on.

Welcome back to Bloomberg Market Europe half an hour TIME until the start of cash equity is trading for this Tuesday morning TIME here are your top stories below parity reception fairs and winter DATE warnings push Global stocks continue their move lower after equities saw their worst route in 2 months DATE European NORP and US GPE future's dip. Plus opac on alert crude prices pear losses after Saudi Arabia's GPE energy minister warns the alliance could cut production to curb recent price drops. Welcome back to the program everybody then half an hour as I said until the start of equity trading and this is the deteriorating future's picture actually but it's not just a European NORP story we've got US GPE features also looking a little bit weaker which is interesting just over the last half hour TIME this is Mark PERSON said they were at fluctuating through the Asian NORP session so we're weaker I'm thinking about the fed ORG and tied to policy About the European NORP growth challenges around energy, perhaps. With that in mind, Mark PERSON . I want to see what's caught your eye. I know you've been focused on on yields in Europe LOC and the extent to which they reward investors. When you take into account how Inflation is. Yeah very much so so normally we look at kind of a real yield measures as derived by the market inflation adjusted returns but I just wanna do a more simple mature today DATE which is German NORP to your yields minus headlines CPI German LANGUAGE CPI year and year DATE rate and you can see that it is collapsed to completely unprecedented The data we have here and he goes back to about 1990 but I've gone back to 1982 DATE here used a 30 year DATE window and you can see we've never Like this over the past year DATE . And this is obviously what's been weighing on the year DATE . You're essentially earning deeply negative real yields. So you're basically effectively losing money in real terms to buy German NORP bonds. And that's very very dramatically so at the moment. And I think this goes back to the idea that Jordan Rochester PERSON said from the mirror about the idea that Europe LOC Potentially much more downside over the year ahead DATE . My one CARDINAL catches of course that we do have an inflation problem. We're gonna have various yield spikes at some points in the year ahead DATE . Even if the ECB council state hiking path and that means that if the euros here with yields this negative, if we Little PERSON baits and reel yields we might see some painful short squeezes and that goes back to my point that while I'm very bearish you're I think risk reward volatility adjusted it'll be a hard play whereas European NORP stocks just probably have downside over the next year DATE . Mom maybe we need a little bit of distance from the story to make this kind of assessment but the subtitle on your on your chart there says we'll be easy be regret it's negative rate experiment are we suggesting is there I mean maybe yes being negative for too long or being loose policy for too long but what did inevitable that negative Talk PERSON us to this place I mean the pandemic and the post pandemic recovery and all the geo politics that we have is really what's driving inflation Well not not just what we saw from Central Banks ORG over decades DATE . No you're absolutely right and I think you know that's quite a newest discussion but I this is the environment of negative yields and one CARDINAL of the problems is is that we've enter Crisis Inflation PRODUCT crisis with companies in Europe LOC borrowing an exceptionally low rate and therefore we they don't have any resilience to any hike and rates and in clearly that makes them much more fragile. They do not avail of this period of growth in Europe LOC . They're not exciting growth but you know the the crisis was back here. Maybe the European NORP crisis For another couple of years DATE . But for all this period, you're a part of chance that it wasn't in crisis. It should've probably got out of negative rights. That would have made it system a little bit more robust. A little bit more resilient to the next downturn. And a little bit less painful now. But you're It is not the cause of the problem Okay. Mark, thanks for thoughts there. Germany GPE and it's low yield and negative real yield environment. Let's get to a business flash now. Some of the other corporate That we're covering today DATE and with an update here's Hi, Anna. Elon Mosque ORG has subpoenaed his long-time friend, former 20 CARDINAL CEO, Jack Dorsey PERSON in his legal battle with the social media giant. Mask is seeking to collect Undated

Ela Mask PERSON has subpoenaed his long time friend former 20 CARDINAL CEO Jack Dorsey PERSON in his legal battle with the social media giant mask is seeking to collect Understated GPE how much of its customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of the expedited trial in October DATE . Ford ORG is cutting 3000 CARDINAL jobs this week DATE to fund its shift towards electric vehicles. The cuts will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . See you Jim Farley PERSON has repeatedly The company has too many workers Ford ORG wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year DATE by 2026 DATE . And zoom shares fell in US GPE late trade after it projected sales and profit for the current quarter DATE below estimates it sees annual DATE sales growing to about $four MONEY . 4 billion CARDINAL down from its projection in May DATE of as much as four CARDINAL . 55 billion Zooms pandemic boom has cools considerably as officers reopen and competition intense fires from Microsoft ORG teams that's your Bloomberg GPE business splash Anna thanks very much Anna Satkins PERSON here in London GPE with a business Let's get what's going on in China GPE . Is back stopping troubled real estate firms with some 29 1 billion dollars MONEY worth of special loans that as Beijing GPE 's steps up support from main pillar of the Chinese NORP economy and that is of course real estate let's bring in a Bloomberg GPE Senior editor for China GPE . What's driving the these these policy moves then Well clearly there's AA very deep deep slump in the real estate market we're seeing 29 1 billion dollars MONEY being dulled out through the Chinese NORP palsy banks credit growth is you know last month DATE could hit could have hit a 5 year DATE low So, you know, that the banks are having problems finding lenders and and that the real estate developers are finding how real trouble completing projects as we've seen with mortgage boycotts across China GPE now. And what are the risks of this approach Jonas Well, look at financially, we're we're seeing an erosion margins and and you know, the banks are dealing with a cascade in in bad death surfacing from from an ongoing property crisis And and as they're also now cutting rates more broadly you also have other companies in China GPE who are clamoring for financing but but Chinese NORP banks are pretty conservative and financing small media signs from so they're struggling many firms are struggling under the lockdown to stay afloat Even much higher rates and it's certainly not good for the Chinese NORP economy but in the short and long term. Okay and Jonas PERSON I think we've we've got some really interesting reporting that links to this around the extent to which Chinese NORP banks are inflating their loan numbers. What more can you tell us on that? Yeah, I mean, that's an interesting development. The banks are caught in a real tight spot. As we discuss that the government is banging the dumps for them to land more and get the economy going while they're finding few companies willing to take on loans given the economic uncertainty bankers we have spoken to say there's a certain window dressing going on with lenders right now they're dolling out loans and then allowing these funds to be I'd be clients to deposit the loans back at the same rate other banks are buying from each other through short-term arrangements which is also pumping up volumes so in essence as we discussed 5 year DATE low in credit increase last month DATE could be even worse than than This official data show at least Jonah interesting story thanks very much bring back Jonas Bateman PERSON joining us there from Hong Kong GPE coming up on this program oil gains off to Sadi Arabia GPE said Opec ORG maybe fourth ORDINAL to come production more on that next He's been there.

China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . Energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. China GPE is the world's largest greenhouse gas center. There is no way to tackle climate change unless China GPE reduces its emissions to nine CARDINAL oh. The country's reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely harm her industry. All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . What is your basepace for Italy GPE in terms of what happens If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discretion about that then it'll indicate that they're on the way and I think once most important now we've learned from history on this learn from our experience is the more the fed ORG can commun Better off will be so that communication that stipulated about what the policy will be Is very important right now and I hope that that does that. John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what role I have financial conditions play and should the fed ORG be paying more attention to this or at least I loot to that fact in order to sort of bring down This is what needs to be done. This is what's worked in the past. This is how we can do it. The the more convincing it will be. I think that Markets don't like is uncertainty about what's gonna happen to us more uncertainty today I think that's one of the reasons why the markets went down but the the more that the indicate Where it needs to be gone. That's why these rules are so called tailor rule, whatever you wanna call it or advantageous cuz it says, hey, we need to move a little bit further and hopefully, that will cure the problem a more rapidly than people expect. John when you wrote about this in 1982 DATE flag the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a recession given perhaps from the policy errors before does that mean we're at a point where recession is going to be maybe I don't think it needs to be part of the cure what we we've experienced if we let inflation build up over time like it's in the 70s 7 years DATE of hiring placement. If we nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about they're right to worry about cuz they've seen in the past but the more that they're

This is what we need to do. This is good. Make the economy healthier. Grown even faster and I think that's what we should emphasize. This is better for job. Just as better for the economy. This is better. And also Mention PERSON the world economy we have inflation all over the place right Stamford University ORG , economics professor John Taylor PERSON . He of the Taylor PERSON all sighting, the Taylor PERSON rule, who was at the very first ORDINAL Jackson Hall Conference FAC , four decades DATE On what to expect at this year DATE 's meeting and thinking about weather we need to see a recessional wheelchair recession in the US GPE . Mark PERSON , I just wanna get your thoughts on what we're seeing on our effects right now. The Euro threatening to drop Territory PERSON you know we're already at 20 year DATE lows on the Euro at our colleague Valerie PERSON pointing out that we Seen another huge moving energy and gas prices upwards in the sense that we've not taken out yesterday DATE 's peaks I suppose these two CARDINAL these two CARDINAL factors are are related though because it is fear about energy in Europe LOC over the winter that has put down with pressure on the euro. Yeah, very much. It's been fear about that. I remember, energy prices have been ahead of the Euro Stories LAW . We don't necessarily need energy prices to go much further to increase that European NORP negativity. They just need energy prices to not come lower and it stays very negative for your one thing that's interesting. When we get really large moves Over like four, 5 days. You you rarely get the market then make a big move and then pause because what's happened is there's been a shifting positionings. The market dynamic is we either start breaking levels and really stretch all we get a rebound and I good example is the early July we fell from 1:04: 40 CARDINAL to parody in Euro dollar in the space of about six CARDINAL session And now we've come from 1:03 TIME : 60 CARDINAL back down to 99 CARDINAL a similar type move in in a in just over a week DATE I think now it we're not gonna be here in a couple of days DATE time where are they gonna really accelerate to the downside as we get a panic or we'll get a bounce into Jackson Hall FAC and so I think this is a really interesting Moment for your dollar over the short term. Okay we'll watch that shirt the short term performance then let's move on but stick with the theme of energy Saudi Arabia's GPE energy minister says Opec PERSON and it's allies maybe forced to cut output he says the future's market has become increasingly disconnected from funda Let's bring in our Middle East LOC energy reporter. Who's with us? Verity PERSON There she is. Let me ask you what this means then about the chances of Opec ORG plus cutting production because just recently we were asking about how much Opec Plus is going to increase production. Now we seem to be in a slightly different world according to the Saudis NORP . Yes, definitely. He said that there might be a chance of reducing production And of course everything but Saudi Arabia GPE says everybody pays a lot of attention to But all prices are still pretty high. I mean they're clean to $ 90 MONEY a barrel. Er but they've eved off the highs of ehm June DATE . And that's raised the question of whether Opec ORG will reduce a little bit further but for a long time Opex GPE quotas have been quite theoretical because a lot of those members haven't been able to keep up with those quoters And we know we've seen a lot of volatility as a result any sort of indications from Russia GPE or signs of global recession futures markets are definitely reacting to those Very good morning TIME . If physical markets are supposedly much better reflecting fundamentals, should we be paying much more attention to the the price of physicals or do we still use features as a guide? Perhaps but there have been plenty of disruptions on the physical side as well. I mean, recently, we had disruptions to pipeline from Kasak ORG stand. We had flows halted from the southern portion of the pipeline running from Russia GPE to We have plenty of wildcard factors which will affect the physicals market and also futures. Iran GPE is the big one that everybody's watching right now. Libya GPE 's managed to raise their production again after a string of disruptions So there's plenty of things to watch on the outside as well so I think it's worth keeping an eye on on both sides. What do we make of the developments in Canada GPE varity we've seen

So there's plenty of things to watch on the outside as well so I think it's worth keeping an eye on on both sides. What do we make of the developments in Canada GPE varity we've seen Prime Minister Trudeau PERSON saying he'll clear the way for further exports to Europe LOC is that is that going to be material is this the kind of situation that global leaders can have an impact This is something that will affect supply way off in the future Whenever you talk about new LNG ORG projects there's a massive lead time to that it takes a long time to construct these projects and while European NORP leaders particularly Germany GPE a travelling around the world meeting lots of different producers and saying how much could you increase product That's great but a lot of these producers are fixed and a long term contracts and if they want to expand the production capacity that takes a lot of time as well and definitely Canada GPE 's another one of those examples to do basically said that he would help take away those hurdles, the regulatory hurdles that been holding back. LNG ORG exports which is is great but it would only affect supply over the much much longer term. Better see thanks so much thanks for bringing your thoughts this morning TIME Blue Bay LOC is very ratcliffe with the latest on energy markets from a number of angles let's get a blue bird first red Update ORG some of the latest headlines we're covering here at Bloomberg PERSON here's Alice Atkins PERSON hi Anna the US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE this after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dastardly crime Ukraine GPE is preparing to celebrate independence day Wednesday DATE which also marks 6 months DATE since rushes invasion. British Airways ORG has it scrapping about 5000 return flights in the coming months DATE that's after cancelling about 13% PERCENT of its summer DATE schedule due to And extended capacity curves at its London Heathrow Hub BA FAC says passengers who've been affected can rebuke alternative flights or seat refunds. And Doctor Anthony Dauchy PERSON who became a household name during the pandemic is to step down at the end of the year DATE the top US GPE infectious Z's expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease at rates since the HIV crisis. The 81 year old DATE says he is leaving to pursue the next chapter of his career. Global news 20 CARDINAL bras a day on air no Bloomberg PERSON quick take part by more than 2700 CARDINAL journalist Analyst PERSON and more than 120 CARDINAL countries. This is Bloomberg PERSON . Anna, Alice ORG , thanks very much. I'm Zack Kids PERSON in London GPE . They're coming up on the program. We're looking at talks to watch including is Alice ORG was just reporting there, IAG ORG , the parents of a British Airways ORG response to scrap about 5000 round trip flights this winter DATE . That news broke just after hours TIME yesterday DATE . So, we're getting an That this is bling bag. Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. We're trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall Estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates.

Overall Estimator are one 1 trillion dollars MONEY , a doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way, and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Welcome back to Bloomberg Markets ORG . You're 8 minutes TIME until the start of cash equity's trading. The future's picture has been deteriorating this hour TIME and this is where we are on European NORP features right now. Looking for Let's get to some of the individual components though and focus on the stocks that we have in focus today DATE . We're right joins us with an update. Laura PERSON , I guess we focus on oil, give me, we've seen actually a bit of a rebound in oil prices. We have I'm watching from the oil majors at the open and this is in response to a bloomberg PERSON scoop that Saudi Arabia's GPE energy minister. Prince Abduliz PERSON , That Opec Plus may be forced to cut production when the group meets in September DATE in a written response to question he said that the paper and physical markets have become increasingly Going on to you strong language that the market is an estate of schizophrenia Arabia GPE is the largest producer with an Plus therefore arguably the most important rant crude features have fallen nearly 22% PERCENT since June DATE this is on fears of a global But these comments are likely to be a bullish driver for companies such as Shel Pete PERSON and Total at the open. Laura PERSON good morning TIME wish small you're also looking at what's the story there? Yeah so the Swiss NORP luxury name has won the support of institutional shareholder services in rebuffing the proposal of the British NORP activist Blue ORG bell capital partners. No bluebell recommended that the formable gary sea of Francesco Tripani ORG join the board to Cloth they shareholders institutional shareholders services however said that the dissident has failed to make a compelling case that change is needed on the board it's worth noting that It's very close with the family of LVMH and therefore you could infer at a potential conflict of interest with Fid GPE instead wish one have appointed an internal board member Wendy Luharb PERSON . And IAG Laura PERSON what's the latest there Yeah so the parent company of British Airways ORG could be facing some negative reaction at the open in response to news that British Airways ORG will be scrapping eight% of their winter DATE flight schedule that translate to 5000 CARDINAL round trips the vast majority of these are short all flights I spoke with one CARDINAL analyst this morning TIME from Bernstein PERSON who told me it's not the But it's better to act proactively rather than risk running too hot cancel too late which of course would be more costly and actually Getting ahead of industry peers being proactive But the key question for the industry right now is where will demand for after summer DATE in the Northern Hemisphere LOC ? Yes and the key question for some people in my team is whether there flights will be cancelled over the winter DATE . I know this. Laura PERSON , thank you very much. You are right. We do not date on the stocks in focus. Michael PERSON , just mention BT in passing, the BT group has said that the Government has decided to take no action on Altis NORP UK's steak in the company after announcing back in May DATE that it would review it under the National Security Act LAW does this pave the way for a bigger for for a bigger state to be taken by the French NORP businessman so we'll certainly keep that stocking focus but away from the stock specifics the mood seems to be deteriorating once Just over the last hour TIME . Yeah look really much it's amazing the shift we've had in just a DATE week DATE 's time from ridiculous talk that maybe it wasn't a bear market rally and we're going to back the old time highs to now panic again I get worried when we go so extreme from one side to the other. Yeah, absolutely. So, we'll we'll keep.

From one side to the other. Yeah, absolutely. So, we'll we'll let we'll keep all of the individual stocks in focus and indeed that negativity and future. So, European NORP future is a week DATE . US GPE futures, not that future This is bling back. When I started I had no idea it was gonna turn into this. Empire. Bring that money back and just building building it building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Access PRODUCT the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Welcome to the European Market open everyone a minute TIME to go into the sort of cash I could eat trading in front in London GPE with Tom Mackenzie Continue PERSON to slide after their worst routes in 2 months DATE plus Opec ORG on alert crew gains after Saudi Arabia GPE The alliance could cut production to support prices. Tom PERSON let's take a look at futures we're seeing a bit of pressure across the board as the traders thinking that the federal reserve The focus of course is on this tightening montery policy and what does that not only for growth but Global market. Yeah, the primacy of course about speech, more hawkish commentary is expected as you say, out of Jackson Hol PERSON . We look ahead to that speech on Friday DATE from Jay Powell PERSON . You saw losses are between 22. DATE Six CARDINAL , percent on the Nasdaq yesterday DATE and of There is options expiry and some hedge fund position as well to factor

Yesterday DATE and of course there is options expiry and some hedge fund position as well to factor in to these markets just add And you saw of course a move significant move in bonds as well as the equity markets currently you've seen the footsy 100 CARDINAL down two tenths of a CARDINAL percent we continue to watch our effects as well given the pressure particularly on the single currency and sterling that came through yesterday DATE on the back again of Down PERSON four tenths CARDINAL of a percent. Over in Spain GPE , losses of 28 CARDINAL points and of course that energy pitcher as well and you saw that in Germany GPE € 700 MONEY per megawatt hour or thereabouts that's the Time ORG it's gotten to those levels ever in Germany GPE compared to about 4045 CARDINAL euros per mega dollar last year DATE the future's in the US GPE pointing to further losses then at building the downside of yesterday DATE down four tenths CARDINAL of a percent Euro PRODUCT dollar again below The US GPE 2 year 10 year DATE currently at 299 CARDINAL across come to be above three% yes they currently just off by one CARDINAL basis. Two And Brent ORG in focus again on the back of those comments from the Saudi NORP 's $ 97 MONEY about account seven tenths CARDINAL of a percent we continue to watch what's happening in Iran GPE as well the US GPE and the American NORP saying there is some movement there in terms of those conversations with officials Tom PERSON this is what I'm looking at in terms of the markets on the move Let's go straight to the This Bloomberg PERSON function. You can actually type On your Bloomberg Terminal Energy the only one seeing a bit of gains this is also on the back of what we heard from the Saudi NORP oil minister saying they could cut production Because of the imbalance currently so energies up everything else is down construction technology and auto parts down some seven CARDINAL times of eight% and that's actually the lowest so those are the industries that are losing the most let's get over natural Good morning to you and you're looking at Germany GPE olds. Yes, good morning TIME , friend. Of course, FX ORG absolutely in focus with your dollar. Absolutely smashing through party this week DATE and continue to slump today DATE . It's really had a bad run and one CARDINAL of the reasons of course is that Weather PERSON 's a massive energy crisis in Europe LOC . It is a supply side inflation problem and that means it's very hard for the ACB to act. And that means the deeply negative real yields across the European NORP continent looks set to stay very very negative. Now this is German NORP reel yield. As measured by the 2 year DATE rate in Germany GPE . The headline German NORP CPI prints. It's a slightly different way to do it but kinda very much the real impact that many people feel. And as you can see it's go back over the last 30 years DATE . As you can see we've really fallen unprecedented territory over the past year DATE . Where Europe LOC 's had a real inflation problem. We've not had a reaction proper reaction yet from the ECB. And CPI is just Way to the top side. And this means that a real terms. If you're buying German NORP bonds, you're just losing money in real terms. Hand over fist. That's real problem cuz Europe LOC has a very very large debt pile. And there's this backdrop which means it'll continue to stay extremely difficult for the year DATE for the rest of this year DATE . Okay Bloomberg PERSON and Live managing it to Mark Cobmore PERSON also getting PMI ORG out at around 8:30 TIME : for Germany GPE which will give us a clear sense of just how badly that economy is faring on the back of course of that energy crisis let's get back to some of the key market drivers then and joining us now is beyond a mante city group global equity strategist and Lynn PERSON In terms of let's start with what happened in the markets yesterday Lyn let's bring you in at this point at the sell off is this is this conclusive evidence now that this was indeed a bear market rally oh yeah I mean I think we've still got a ways to go before we can consider it the full bear market rally but clearly the mood has changed Know it's just red across the board. I mean, I think the the graph you showed earlier with energy really being the only sector up today DATE . I mean, not just speaks to the big themes in the market right now. So, good morning to you. Is it just foolish to find the fed ORG right now? Hey good morning I think one thing that we have learned over the years DATE is not not to fight the central banks, right? And the reaction function of the market if we do expect slightly more ho-cash authoric from Jackson Hall FAC . It's plausible right? So bonjours are going higher and Markets after the

More honky Jackson Hall FAC explosible right so bond deals are going higher and the equity markets after the big rally that we've just had on the back of repricing the central banks to being Whichever way It doesn't surprise me. Let's put it this way. And yet we ask the JP Morgan coming out and saying that the last big hike that you're gonna see from the fair is gonna come through in September DATE and then they're gonna start to ease off and that's gonna improve supportive for equi What is wrong with that call from JP Morgan PERSON ? Well that would be that would be a great outcome if you did the the Fed ORG style that stops hiking in the in September DATE we have a bit more hawkish reaction function of the head going all the way to four four and a half percent CARDINAL into the next year DATE but absolutely more doveish cent Would be very very welcome by the by the equity markets. But I think still there is Continue to be sticky and perhaps the central banks have to hike as much as they can while they can before the recession are environment hits us Wait ORG , 100% PERCENT . I mean, I guess this is why markets are are maybe, you know, pausing to ahead of that Whole speech by J Powell PERSON or is how aggressive can they be in this kind of environment? Yeah, I mean, I think clearly the the mantra from the fat has been they're gonna do what it takes to get inflation under control and markets are now repricing you know that hawkish sentiment. I think you know the move you saw before was people starting to think things might be better than React to a new inflation dynamic of indeed we get to a point where we're never gonna be back to two% ORG where it's more like four% five% in terms of entrenched deflation across these economy what is the The equity market reaction to that longer term. I think we'll have to adjust to the new reality that it's going to be higher inflation for longer right and as long as the central banks are not going to stick to their lower than that inflation target You know, some inflation. I We've been longing for inflation for the last decade DATE , right? Not as high inflation as we have but if if it's stabilizes around three CARDINAL , four%. I think it it Be okay for the for the equity markets to to take it in What are you buying right now? Is there anything that you trade with conviction? So I am worried. Well, I'm not I wouldn't be buying into the rally I worry that the rally has gone a bit too too far I'm bullish on equities over longer term my targets are positive over the next Months DATE but the markets don't go up in straight line, right? So, I worry that there is bad news ahead Before the the good news. So Over the continental Europe LOC within Europe Towards value and I think if there is this risk of more hokeish From the feds from the central banks then I would be particularly worried about gross but gross cyclicals the most so what I've done last week DATE was to downgrade a pads of rose sickles that Done very well in the rally so industrials retailing I'm already underway to chemicals so I do worry that if recessionary worries start hitting the market market Realizing them Parts of the market have the the most toodles I'll be answer what is the call on UK GPE then you mentioned that it's one of your preferred markets add a timer cause city coming out yesterday DATE saying that inflation could top 18% PERCENT rates could get to seven% on the back of all the energy concerns the inflation crisis here in the UK GPE just unpack that Indeed a very very point but some remember that the UK GPE marketing I'm talking Futsy 100 here really is the most international market out there so it's packed with big multi national

The UK GPE market and I'm talking footsy 100 CARDINAL here ready The most international markets out there. So, it's packed with big multinationals where 70% PERCENT of revenues comes from abroad. So, it's not really a bad on what is happening in the domestic economy, right? And it has been benefit Through the first half of the year DATE because it has big waiting in commodities and from what you've said before while they might continue to do well right but also what the UK GPE has is big weighting in defensive healthcare consumer staples these are all very big sectors This region and defensives are very expensive everywhere in the world. Many clients come to us saying, well, you know, it's it's just impossible to find any defensive stats are still reasonably priced. The UK GPE is the one CARDINAL place when you can find still cheap Defensiveness PERSON so that could help the UK GPE call as well. Oh great we'll talk a lot more about the UK GPE shortly it's all playing out Lynn PERSON actually in currencies right euro dollar breaking through 99 CARDINAL . We saw that that also level that we saw yesterday DATE breaking Yeah, absolutely. I mean, I think we spend so much time looking at equities but really currencies are such an interesting story these days DATE . I mean, they were boring and low volatility for so long but it's just become such a microcosm of what's happening in in the global economy and you see the euro breaking through parody. Lots of expectations that it's gonna go lower. The pound yet Weakening and you know the dollar is dominance continues to to be the the big force in markets. Thank you so much. Arlen Thomason PERSON there and training us this morning TIME about I think city group Stays PERSON with us. Now, coming up also German NORP transfer Olive Shults in Canada GPE today DATE . Actually yesterday DATE as his government works to reduce Germany GPE 's dependence on Russian NORP gas imports. We'll have plenty more on that story next and this is Bloomberg PERSON . If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this NYM ORG This trend is coming. It's not going to stop. Is more of a small town that's growing into without call that cryptocurrency version of Silicone Valley FAC . Control your own destiny. You get that from a blockchain and you don't get that without it. The difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis The research process. To grow your practice and make better use of your valuable time. The difference is Law Go to the market that over the past few weeks DATE has made it clear it wants to go higher it got a little spook by

This is a market that over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that due political potentials are rising. Welcome back to the open everyone 13 minutes TIME into the European NORP trading day guess what it's a talk of course about Earlier last week DATE was saying it really is the only catalyst out there in August DATE and for the moment we're Pressure on these European NORP stocks two CARDINAL tens of eight% lower. Kind of kind of girl but maybe I'm wrong. Not at all. Cuz I'm gonna cocktail. There's there is a link here to Adidas and what's happening there? I don't know if you're a fan. So they're CEO of the German NORP sportswear maker. We're focused on one CARDINAL of our stocks to watch Adidas PERSON . There's a surprised part of their CO Casper ORG roasted and Frank PERSON you tell me on good A good council that it can be Adidas or Adidas PERSON . So, this what came straight from the executives now leaving. So, I wonder whether because he was mispronouncing. He said, right, Is enough. I need to find a new company. Questioning yourself. Behind this mystery around the CEO department. So that's that's Addy that's IAG ORG by the way. They are tenants bad news for your winter holidays DATE . Cancelling 5000. It seems 5000 CARDINAL flights over the winter DATE . This is BA ORG of course part of the IAG ORG group BT. Another one to watch Saying WORK_OF_ART regulators here are gonna basically look past this increase in the state by Altis NORP which is increased at stake in BT two CARDINAL about 18% PERCENT . So just a Stocks to watch in the session today DATE francing. Now, German NORP power has served about 700 years DATE of megawatt hour for the first ORDINAL time as markets panic over the country's dependence on unreliable Russian NORP energy supplies. Well, the transfer of Schultz went to Canada GPE as part of Government is working hard to end its dependence on Russian NORP gas. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never such an infrastructure has been built in Germany GPE and that is short time. Easing The process is The difficulty that Germany GPE is facing to make sure that we can move through regulatory hurdles More quickly is something we're willing to do but there needs to be a business case. It needs to make sense for Germany GPE . No, for more, we're joined from Berlin GPE by Bloomberg ORG 's Burkeet Jen ORG in our Bureau ORG Chief in Berlin GPE . We're good. Thank you so much for joining us How much does this actually help with the timeline of how fast some of the energy can arrive in Germany GPE ? Well that the government is is clearly at the moment looking at where is the energy need? And at the moment I mean we do hear that they are seem to be on course unless you know Russia GPE is cutting gas further. They do say that probably if it if Winter isn't getting too cold they they might get through this coming winter DATE with the existing energy storage But there are more worth it or what is going to happen in the next year DATE and during the winter and therefore they say they need to make sure now that in the medium term in in the in in the next couple of months DATE they are gonna get LNG ORG for example from Or also extra gas from Norway GPE and they're also still in negotiations with Qatar GPE . Bucket PERSON just before I get to my next question. Just gotta highlight some redheads crossing the term. Of course, this links into what's happening across the energy pitcher. In Europe LOC , In this case we're talking or we're waiting for the germ appear my out at 30 minutes TIME passing out but now you got French LANGUAGE August DATE services PMI ORG come in at 51 CARDINAL so below the forecast of 53 DATE that is gonna be concerning for officials in France GPE that services beer mile for the month of August DATE coming in at 51 CARDINAL so still inexpensive territory but the forecast have been for Manufacturing PMI in contraction 49 CARDINAL at the forecast have been for 49 DATE . Again, that is for the month of August DATE . Burget ORG , as we tie in the broader economics to what's happening in the gas pitcher. Across and the energy picture across Europe LOC . Where was the urgency from policy makers when we're looking at € 700 MONEY per megawatt

A broader economics to what's happening in the gas picture across and the energy picture across Where was the urgency from policy makers when we're looking at € 700 MONEY per megawatt hour in terms of german NORP power prices long term conversations with the Canadians NORP is not gonna be enough is it? No I mean they they are looking at at the impact obviously for the economy you pointed out that Europe LOC obviously is already facing The economic backlash in Germany GPE is at the at the border of recession. So what they are looking at is actually also to keep the the the balance right between the impact for the company so that the companies can still pay their the rising for the rising energy, prices, and at the same time also to keep basically on the one hand, the Unrest ORG under control and and also the so the the burden for consumers therefore the government is looking at Rebutting that the bird and they have passed this surcharge which is passing on € 500 MONEY per family to the consumer and we will see some further measures also including further fiscal stimulus from the government. Berga thanks so much Burgan Jen PERSON and there are chief in Berlin GPE now let's get back to Batman PERSON the head of European NORP equity strategy at a city about that we're talking a little Before about your biggest conviction we talked about inflation in the US GPE and then we started talking about the UK GPE I know city really shock waves you know across trading room floors with that 17% PERCENT call on possible inflation in the UK GPE does that mean that you're you know reworking a lot of your Forecast around Europe LOC as well. Oh in terms of the UK GPE forecast it is really So the conviction is that higher Higher food prices, higher energy prices are going to hit non-corbonic core inflation is Is much lower right? It's around Six% it's more in line with with where consensus is and You know, the winter is coming and of course, energy crisis as we've discussed before, continue to stay high, right? So, you've got to imagine that there'll be inflationary pressures coming through into the winter. Be out of Anna's expecting what 10% PERCENT earnings grow this year DATE five% next year DATE what what is the earnings the EPS ORG contraction when we factor in this gas shock So, this is one of my biggest stories, right? That's earnings expectations. It's definitely have to come down. You said Anna is our Plus five CARDINAL for the next year DATE . However, it should be fair if we exclude Out of this 10% PERCENT is a more reasonable two% ORG for for this year DATE but 10% PERCENT for next year DATE right and if indeed as city economists forecast we are going to get hit by recession in the Euros LOC zone next year DATE that's that's Far too far to bullish so I think It could come to the negative number for this year DATE the pain will be concentrated around the winter months DATE and quarters of course year on year DATE we could see construction of around 10% PERCENT a big EPS ORG recession It's around 30% PERCENT contraction. So, you know, this minus 10 can improve even over the optimistic. Okay minus 10 CARDINAL in terms of VPS ORG can even that can sound over the optimistic and they call that of course to upgrade tell goes to over eight CARDINAL particularly concerned about Cyclicals. Of European NORP equity strands at city thanks for those insights as ever coming up Saudi Arabia GPE awards that volatility in the oil market May 4 DATE Opec class to cut This is a redhead cross the terminal saying that the US GPE retail gasoline falling to its longest run of decline since 2015 DATE just some good On flash. Can we get the details around Saddy Arabia GPE ? And oil next. Stay with us. This is

China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs of more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. Is the world's largest greenhouse gas cemetery? There is no way to tackle climate change unless China GPE reduces its emissions to need oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. Severely hump All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show here to peer conversations by uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Welcome back to the open we are 24 minutes TIME in studio European NORP trading day just recapping a couple of redheads across the terminal important when it comes to anyone looking At the energy complex so US Natural Gas ORG prices hitting $ 10 MONEY for the first ORDINAL time since 2008 DATE that is gonna be linked so of course a searching at demand setting In in Europe LOC when it comes to gas prices we saw those jump more than 10% PERCENT just yesterday DATE alone and of course German NORP energy prices getting to Above € 700 MONEY per megaward hour. The other component when it comes to energy and this is at the pump in the US GPE or in Portland GPE when it comes to inflation Portland GPE when it comes to the politics of the US GPE leading up to those midterms in November DATE . Us GPE retail gasoline falling in its longest runner twice since 2015 Francine PERSON . That is important when it comes to that the The fact that gas prices now these petrol prices, gas prices at the pump coming down. Yeah and again, we're starting now to see a lot of pricing forward because they worry about the winter and I saw one which I would say is absolutely terrifying. He's from energy aspect saying that gas prices cause rice € 400 MONEY . It flows via North Stream GPE to stop in Number GPE . And support what's happening when it comes to Northstream that's cosing down at least for 3 days DATE according At the end of this month DATE the concern being that it won't come back online right let's get what's happening Saudi Arabia GPE then energy minister saying that Opec ORG and it's allies may be forced to cut output as the future's market has become Disconnected from fundamentals for more. We are joined by Bloomberg PERSON all reports of verity, right? Priority. What are the details? What we know? So he was pointing to extreme volatility in the market was essentially saying that futures prices are swinging wildly whenever there's a change in sentiment. Ehm pointing particularly at any moves from Russia GPE or signs or the global recession. Ehm which is of course the case he also said that Opec ORG may need to make a cut and that's already had response from particularly Asian NORP refiners who of course use that crude as a feed stock. What does.

May need to make a cut and that's already had response from particularly Asian NORP refiners who of course use that crude as a feed stock. Verity what does this mean going forwards actually does it mean that we could see production cuts quite quickly We'll certainly be talking about the next meeting of Opec ORG and anything that Sadi Arabia GPE says is looked at very closely as the most powerful member of the Opec ORG group They never really give too much away before the meeting. But just the idea, raising the possibility that they might cut is certainly interesting after many, many months of having a rollover event, basically, Opec ORG , whereas predetermined, and everybody sort of had Dear WORK_OF_ART what was gonna happen next? Very thank you so much Spit of a Whip Lash effect. PMI ORG readings just in a few minutes TIME this is Bloodberg PERSON . So the inflation environment has been changing a little bit. Inflation has been very low for 25 years DATE . Now people think inflation's coming back. How are you gonna deal with that? I think many of the tools that we've historically used to ballot inflation no longer work in the same ways they used to I think people often times thought of of housing as a way or or especially retail and real estate is a way to to hedge against inflation Less and less possible the way we've invested in it. I think commodity similarly have been thought of as a way to hedge against inflation. There are challenges over the long term equities have been a hedgehog inflation. We will continue to do what we have done in the past the possibility of heading against inflation. Because Types ORG of inflation have to be hedged in different ways. So, if it's a very quick increase of inflation as opposed to a slow rise of inflation. Is it temporary? Is it a long and a persistent type of inflation? So, for us, I never model myself in economists that can predict where inflation is going. And so what Portfolio where they are different options that can fight the different types of inflation and to pay close attention to it and and Fundamentally it's done through the equity The really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Welcome back to the open everyone 30 minutes TIME into the European NORP trading day and here are your top stories below Global I could actually look for direction after the worst route in 2 months DATE Cut production to support prices. Now, things

After the lions could cut production to support prices. Now, things dumb are looking a little bit different in the market Yeah a little bit of a turn around in Sentiment. Hedge fund positioning but high yields as well particularly impacting cause tech. And it's too really important stories predicting when it comes to Again. In focus for us today DATE . We're looking at US GPE natural gas prices. I was getting to $ 10 MONEY for the first ORDINAL time since 2008 DATE . But at the gasoline in terms of the pump and this is important of course for households in the US GPE and for the politics Look we could cut back on output. In terms of how the market's shaping up then the broader benchmark currently down a 10th CARDINAL of a percent turning round from the bigger shop that we were seeing in terms of Is just in positivity just up three CARDINAL points 5100 CARDINAL down four tenths CARDINAL of a percent as well we'll switch it over see how things are playing out across these sectors energy is in the green as autos as well basic resources Only at one% on the back of that stronger oil pitcher again tying in to Bloomberg PERSON 's conversation with the energy minister of sound the Arabia and that threats there to cut production based resources also get United ORG tens of percent PERCENT a number of sectors still in the red though including food and beverages media and health care as well that are the shape of the sectors at least 30 minutes TIME Trading station this Tuesday DATE . Energy up one% ORG . Now, turning to the economic picture for Europe LOC concerns continue to mount. That's as a fallout from the war in Ukraine GPE . Drives up energy and food cost. Now, as This morning TIME which are giving us a bit of an insight into the challenges facing the economy. Now, from where we're joined by Lizzy PERSON Birden PERSON . Hi, Lizzy PERSON . So, what have we learned And what else are we expecting? Hard. The French NORP data. It showed contraction on the composite PMI ORG . And manufacturing but slight growth when it comes to services. We're still waiting for the flash composites for the euros zone and the UK GPE . Booths will give us an indication of How much the soaring energy costs and the risk of Russia GPE cutting off gas supplies will threaten a recession across Europe LOC We're expecting to see contractions in both Europe LOC and the UK GPE in August DATE and then Bloomberg GPE economics looking ahead to the fourth quarter DATE is expecting recessions in both don't forget in the UK GPE consumer confidence is at a record low we saw it in that GFK ORG survey it's at a level that's Consistent with a recession already and we're not even at the peak of inflation yet. But what I would point out is there are economists also say that a UK GPE recession is expected to be milder than previous Historic PERSON ones. We've got this healthy household balance sheet and also the expected substantial fiscal response. Our economists say that even Let's trust says that a recession isn't inevitable. Er it actually despite the tax cuts that she's promising is likely though not to the extent Without without her help. Yeah it's something consensus now isn't it the UK GPE is gonna be adding or falling into recessionary territory if it isn't already there the euros own as well many economists saying that that is almost inevitable recession for the years DATE I'm just getting that German NORP manufacturing data it's actually a beat on the forecast for the month of August DATE so manufacturing PMI ORG coming in at 49 DATE . Eight CARDINAL so still just about in contract But the forecast have been for 48 DATE and I believe it's a beat on the July DATE number as well interesting of course as we know the industrial sector in Germany GPE under pressure as a result of those very very high energy cost that we're talking about yesterday DATE services PMI ORG by the way falling to 48 CARDINAL . Two CARDINAL that was a big miss from the forecast of 49 CARDINAL manufacturing it seems seems to be holding up better than some had expected Are over in Germany GPE . Lizzy PERSON you were in Felix though yesterday DATE at the glamor Location of Felix Oport ORG . At day three DATE of the strike there. Talk to us about what's happening. What would the mood was on the ground and whether or not there's gonna be more industrial industrial unrest not just a feeling so but beyond in the UK GPE . Really interesting talking to workers on the picket line Tom PERSON . They said that they're going to stay there holding out until they get a 10% PERCENT pay rise because of course we've Double digit inflation in the UK GPE .

Workers on the picket line Tom PERSON they said that they're going to stay there holding out until they get a 10% PERCENT pay rise because of course we've got double Inflation in the UK GPE . But of course we had that forecast from the city yesterday DATE saying that inflation in the UK GPE could go above 18% PERCENT next year DATE . So I asked them Even if you got 10% PERCENT that would look nigger by the time we get to 2023 CARDINAL they said they'd hope to renegotiate in the New Year EVENT I should Out though that that city forecast is perhaps a bit aggressive because it assumes that policy makers will do nothing and there's a report on the terminal today DATE by my colleague Joe Mays PERSON reporting that Liz Trust ORG would at least do an emergency spending A budget but a spending package to help people with their In September DATE . Okay, there's a burden. Thank you very much indeed. Just to to remind viewers so that manufacturing peer might have always had a journey. Was actually better than the forecast but also as a beat on July DATE as well. 49 DATE . Eight CARDINAL for the month of August DATE . Compared to 49 CARDINAL . Three CARDINAL in July DATE and the Euro PERSON just pairing somewhere Losses on the back of that data currently down two tenths around two tenths of a percent QUANTITY still at below parity now as we just heard concerns € 4 MONEY area economies continue Out or maybe maybe this pier my date around me is sway just some of the more drastic concerns is having the impacts on the euro as I mentioned currently at trading below parity What is happening in terms of the dollar king dollar is is a key factor When it comes to the europe LOC but also of course sterling and EM currently said no mirror G 10 FX ORG strategy spoke to us earlier About the perfect storm that is engulfing the single currency at the moment It has been mostly a dollar story. Euro has an under performed as much as I think it should. I think the the FX ORG market is totally miss pricing. The situation you're the situation is a complete rethink of the economic model near your zone and I'm just it is struggle. It's strange for all of us to see the euro. Sending off so slowly. I think it should be much faster We'll be testing 97 50 CARDINAL down towards ¢95 PERSON in the next few months DATE . Now, we're joined by John Hardy PERSON . He's head of FX ORG strategy at Saxobank ORG . John PERSON , good morning TIME . So, going back to that German NORP manufacturing PMI ORG , a bit better than expected but anything below 50 CARDINAL . Still indicates a contraction. What are currently stretches missing? I mean, we're heading towards a recession and and there's probably a little way out of it. Yeah. We've gone down pretty far, pretty fast. Let's recall we're trading. Up above 103 CARDINAL , not that long ago. Found well below parody, yes, a slight beat on that, but if you look forward, of course, at these energy prices, these four CARDINAL prices for power for natural gas, we're talking about levels from Kiwanis NORP . I'm And understanding that companies are some companies who are not simply not hedging at these prices so either the prices have to come down or or production will stop To some degrees. So, that's that's the oblique outlook you have in Europe LOC with this current shutdown of the Northstream LOC on pipeline etcetera. So, yes, the Europe LOC your zone and the euro is be set with a very ugly menu of problems and I see continued pressure There unless there's something a very dramatic it develops in the the US GPE dollar side of things and I'm not saying that. So, this parody break, it could be quite considerable and we're looking down towards the next big round levels. The oh spot 95 CARDINAL , even oh spot 90 CARDINAL if We're seeing in the Ford ORG market for for power et cetera. If we realize those prices. What would take 00 DATE . Nine 5090 DATE . What what gets euro to 090 CARDINAL . John PERSON . Is there a job? Let's when you have when you begin to have an actual shutdown of key parts of industry a real a real crisis during the winter this is not something I'm calling for it's it's a risk we do have a hopes that the the natural gas bill is sufficient to keep Europe LOC won Winter DATE but actual manufacturing could be another story and as your previous strategist indicated you're talking about a re redefinition or rebuilding of the entire years DATE on growth model particularly in Germany GPE which was unfortunately based too much on cheap Cheap Russian NORP gas. That takes time. This is not something you accomplished over the course of a single winter DATE . So, this is a long-term issue. In the meantime, I think the US GPE the US GPE dollar and US GPE economy strength We could see it just sort of rolling on for another quarter CARDINAL plus beyond what the market's expecting in terms of the

I think the US GPE the US GPE dollar and US GPE economy strength We could see it just sort of rolling on for another quarter CARDINAL plus beyond what the market's expecting in terms of the the timing of the recession the timing of the inflation slowdown and I think that's gonna keep the dollar bid the fed ORG is gonna have to stay on message probably see that this week DATE with the the Pals Beach but as well quantitative tightening and that hasn't really even Screwed up to this the pace that we need to deceive. Just going quickly back to the auzon so our Bloomberg GPE economist actually Can have a shallow recession as long as consumers are shielded towards, you know, for the energy cost going up. Is that possible? Like, if we have a much Or winter DATE ? Actually stop that you should be in its track and raising rates. Well It's a cost of living crisis it's a it's a real slowdown so it might be shallow or it may be short but I'm not sure it's gonna be that particular particularly shallow in terms of the real GDP impact so it really Ends on what the energy price looks like. Come spring. I think if you wanna call this recession and and I'm simply not capable of telling anybody what's that price might be and that's going to be the determinant here. When it comes to to the pound a sterling John yields up and we saw that yesterday and yet the pound continues to be hammered. Trading according to some like an EM currency. Does does it continue Tell us about about the state of the UK GPE economy. Hey Well it tells us about the state of the confidence in in the pound because it is a as you say it's a very remarkable set of developments when you have The rates are pricing in a tremendous you know significant acceleration of the bank of England GPE 's had a tightening plans and yet the currency does not respond. I think it speaks to the the set of issues facing the UK GPE with the massive external deficits with the new government coming on board. Very popular Gram PERSON not likely to shore up the fiscal situation in any meaningful way. And Stoney PERSON is going to take the impact there It just yawning. Again, yawning external deficits. I I don't see what approves the situation for the pound and you know, it was talking about the euro. I think the pound is in even worse situation. I mean, we could be talking about parody Starting US dollar by the end of this winter DATE , if something doesn't improve in this outlook. What's your call on on your sterling Brooklyn. You're a sterling sort of indifference. If you are, you know, I think I think Sterling ORG 's issues are are heavier. I think we could go a bit higher but I'm not expecting drama and that's and that pairing but I would I would expect starting to come out on the weaker side of that incoming months DATE . Okay John Hardy PERSON head of FX Stransing ORG at Sankso Bank ORG at the pound could get to parenting with the US GPE dollar by the end of this winter DATE thank you very much for your takes coming up Chinese NORP banks are employing unusual practices To inflate their loan volumes. We look at Vulnerabilities LOC being baked in to the Chinese NORP economy. Stay with us this is. This week DATE as the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the kansas city feds 2022 CARDINAL economic policy symposium Discuss the economic issues and solutions that keep the world's money moving coverage starts August 25 DATE on Bloomberg PERSON television and radio

Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. I think it's happening. And COVID ORG has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semiconductor industry overall and estimatar a one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point. Leave those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology but which only three CARDINAL companies can satisfy that needle. No one covers the world like bloomberg PERSON . Seven% in the coming months DATE . 24 hours TIME a day. Welcome back to the open everyone with 45 minutes TIME into the European NORP trading day we're seeing games that we didn't see at the open about 45 minutes TIME European NORP stocks down one 10th CARDINAL of a percent. A lot of people Tom PERSON are actually on holiday which is I know volumes are a little bit thinner and really it's all about Jackson Honey PERSON . I have such a big speech from J. Powell PERSON . Everyone's kind of a little bit away than sea mode, right? I feel in a wedding sea mode. I'm like looking at tickets for Harry Styles PERSON or maybe a couple of football games. I look at the markets But it's really Friday DATE because you're entertainment use them. Football games. I mean we're still buffaloed by why you're a Chelsea PERSON fan but we'll we'll look past that. They're playing for him. Okay all I care about is the fact that Arsenal are doing very very well indeed. There we go. There's entertainment. Yeah of course we're looking how to Jackson GPE . Is it a big surprise that we're expecting more Hawkish NORP Commissioner? There's gonna be a pushback. Mark the the liquidity depends on how hockey is right. That's not a For the fed ORG officials within the fed ORG of suggested trying to push back on on this narrative that we're seeing from the markets that you're gonna get a pivot. The JP Morgan saying the last big hike is gonna come September DATE . They're not saying is the end of the hiking cycle but the last big 175 CARDINAL base points in September DATE . Yeah. And then you're gonna get an easing off and that's gonna approve supportive. The Bulls at JP Morgan PERSON . Yeah, what I love is also On Twitter PERSON and also hear all the time and it feels like the market are finally clocking up to the fact that there is something that that will happen in the winter If we have a very cold winter DATE and so those prices are just going through the roof in the middle of August DATE . On on oil and and what is happening with this energy crisis and there's an energy crisis in China GPE as well but we're gonna be talking about what's happening in terms of real estate and in terms of the demand for loans. The energy crisis by the way hitting such one. In China GPE . Some banks from flating low numbers as they struggle to meet government demands inflating. Demands to pump more credit into The economy is an intriguing story. It tells us a lot about what is happening in that economy. Let's bring in Bloomberg Sr. Editor for Greater China Finance ORG Jonas Bergman PERSON in Hong Kong GPE . Join us. What is driving this inflation there are the numbers out of banks. They're kind of fiddling the books for the regulators to try and show that there's demands blown when maybe there isn't. Well, there there's certain being creative. It's it's an interesting development. The Chinese NORP banks Chinese NORP banks are caught in a very tight spot right now. On the one hand, as you said, the government is banging the drum for them to land more, to get the economy going, while on the other hand, they are finding very few Is

One CARDINAL hand as you said the government is banging the drum for them to learn more to get the economy going well on the other hand they are finding very few To wanna take out loans given the uncertainty in the economy so back as we have spoken to say that a certain window dressing is going on with lenders dolling out loans and then taking back those funds basically paying the same rate on on the demanding the same rate on loans and the deposits So with credit growth credit increase last month DATE hitting a 5 year DATE low it's it's it's it's it's incredible that that in fact those numbers were even more dire than than they showed. So Jordan PERSON 's what are the risks actually of this approach Well, well, given the the the banks are currently also dealing with a major property crisis big big rises in loan losses. So, certainly Narrow emojis so certainly these types of activities is is not gonna help that. There are also in China GPE . A lot of smaller companies climbing for financing. Which are, you know, and banks tend to be the big banks in China GPE tend to be fairly conservative. So, Smaller companies millions and millions of them are are being forced to pay rather high rates outside of the you know outside of the the regulatory or more in the in the non banking market so there's a lot of risks for the Chinese NORP economy coming up and and you know just this sort of window dressing is is probably not Best right now on the for any any any party in the economy really. Do you wanna thank so much Johnsburgman NORP there in Hong Kong GPE tour I have played two CARDINAL more of course on China GPE one of the most interesting probably stories that we had in August DATE and that surprised by PBOC that they did so little about 2 weeks ago to support some of the households so we're actually real estate coming up shares in the world second ORDINAL biggest cinema group Continue ORG to plunge coming up. We look at what's next. For the troubled, very troubled company. This is Bloover GPE . Soaring energy prices in a short supply of key chemicals that produce synthetic fertilizers Are sending pig, cow, and horseman your price is soaring even human waste is in demand as farmers hunt for alternatives fertilizer helps increase crop yields How much moisture is held into this? It's it's a lot of organic material into the compost of breaks down the menu and the straw breaks down into a Fryable mix so it can be mixed into your Soil in the ground and and for growing a whole range of different vegetables Hold the nutrients in holds the water and harm it really increases the The kind of buyer any profile disorder. The recent price bike could mean more farmers going organic for the long term.

I think that it's hard to put your head around any narrative. Let's just be honest. We've had sort of a shift in are we in some sort of calculation, fears, moment, people are talking about that all day DATE yesterday DATE . Welcome back to the open we are 52 minutes TIME into the European NORP trading day you're seeing a bit of an adjustment Sentiment PERSON after that significant seller that we saw on Wall St yesterday DATE you're essentially just down about a little under a 10th of a percent across the European NORP benchmark but future state side of turned around US GPE features SMP minis pointing to gains of a little over a 10th of a percent a similar pitch for the Nasdaq of course which sold off at more than two CARDINAL . Six% yesterday DATE the Euro ORG as well Some of the earlier losses to currently trade still below parenting at nine nine DATE at three CARDINAL six. Just down the 10th ORDINAL of a percent after some manufacturing peer mi for the month of August DATE at a Germany GPE came in better than expected. They're still in contractionary territory. Right, let's take a look at the events today DATE . Other events that we are watching this morning TIME . We're gonna get more PMIs from Europe France GPE and Germany GPE . With the Eurozone at 9 AM TIME London GPE time and the UK GPE at 930 CARDINAL . Then at noon TIME at Europe LOC here in Europe LOC the focus continues to be with Fabia Panetta ORG speaking in Milan GPE at 3 PM TIME after the US GPE markets We're gonna get new house sales data painting a clearer picture of the state of the US GPE economy in the last month DATE the mid some pretty decent reporting from Bloomberg PERSON around the drop in house prices in some of the hottest markets there yeah it's good reporting elsewhere in the US GPE primary elections in Florida GPE and in New York GPE later tonight TIME we'll hear from Minneapolis GPE fed presidential Kashkari PERSON as Justin Trudeau PERSON on day two DATE of his 3 day DATE visit the focus Diversify Germany's FAC energy supply. Right, let's talk. Also, about center world, shares in London GPE based cinema chains, cinema world dropping again today DATE after an 80% PERCENT drop last week DATE . Now, the firm said it was considering a voluntary chapter 11 LAW filing in the US GPE . As it seeks to cut its five 1 billion dollars MONEY debt. Now, joining Also maybe trying to get some bargains to go to Not happening but what exactly is this company like why isn't it such bad position They had a very bold strategy in the years DATE heading up to the pandemic. They borrowed Lee PERSON to acquire regal in the US GPE , which, you know, built them an empire, made them the second ORDINAL biggest chain in the world, but that had them at a high percentage, a high multiple, and you know, no one plans for a oh revenue outcome, but that's what they faced and now, you know, after extending many lifelines negotiating with land Negotiating with lenders, waivers, Sort PERSON of running out of road and they've they're looking at their voluntary Come back to haunt them. What what is next then for this company do they become they go through bankruptcy they do chat to 11 CARDINAL did they then become AA takeover target what happens with their assets how do you see the unfolding yeah I mean Of questions and and what we're gonna have to to do some reporting and see but if if they do carry through with the the chapter 11 LAW they'll be protracted talks with creditors they may end up taking control of the company and you know then they've got new owners already that we'll see what they want to do that will erase questions over jobs oversight And over the strategy which you know some have criticized even before the pandemic so you know these processes can take months DATE even years DATE so we'll we'll wait and see they they criticise that the film slate this year DATE in a world and that that's another reason why they believe that this has come sooner than maybe they expected you know not many big summer blockbuster Those big movies going straight to streaming versus being released into the into the cinemas but a bold sometimes these these pay off and in this case it has. They could have looked like James PERSON . Is that your is that your call for the movie to watch? That's it. That's my call. There we go. Fantastic. Much on the plight of Sydney World ORG and we'll continue to watch that story for you. As well, in terms of the market, is this a quick to check before we get to break currently across the benchmark. You're down just a little under a 10th DATE of a percent here in

And we'll continue to watch that story for you as well in terms of the market this is a quick to check before we get to break eh currently across the benchmark you're down just a little under a 10th DATE of a percent here in Europe LOC but futures as we mentioned In the US GPE pointing up now SMP ORG is up two CARDINAL tens of percent similar picture for the Nasdaq as well Euro still parenting but in 99 33 DATE just down a 10th CARDINAL of a percent a little bit of a turn Sentiment of the heavy selling in the US GPE yesterday DATE . Stay with us. That is it for the European NORP market open surveillance early edition is up next. This is Bloomberg PERSON . When I started I had no idea what's going on turn into this. Empire. I don't have any investors. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. On the David Rubenstein show here to peer conversations I uncover the untold stories of the world's most successful leaders watch Wednesdays DATE on Bloomberg Television Hey Facebook Welcome to Dead Australia. Hey I don't think it needs to be part of the cure but we we've experienced that we let inflation build up over time like it's in the 70s it was 7 years DATE of higher hiring We nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible. Never such an infrastructure has In Germany GPE and that is short time. Canada GPE can and will position itself to be. A key supplier of energy to the world. Is Bloomberg PERSON surveillance early edition with Francine Laqua PERSON . Well, good morning everyone in Walk ORG .

Surveillance Well, good morning everyone and welcome to Bloomberg Surveillance PERSON . Early edition in front of here in London GPE , here's what's coming up on today DATE 's program. Below parody, recession fears, and the energy crisis, push through euro to a two decade DATE low. Stocks in the red, well, glow black hoodies continue to slide after their worst route in PMI ORG coming 49 DATE . Seven CARDINAL it's a touch better Mainly supported by Germany GPE but again anything below 50 CARDINAL means there's still a contraction if you look at services PMI ORG that's falling 50 CARDINAL . Two CARDINAL so that's actually worse than expected now the picture across the board for European NORP stocks pretty much unchanged traders really bracing from a lot more hawkishness from the Speaking to Arlyn Thomas PERSON and really one of the things that we need to spend More time on is a currency yesterday DATE we touch parody currently at 199 31 DATE and this really goes back not only to energy supply in Germany GPE but also dollar strength king dollar and what that happens or what happens with that next 6 months DATE the 10 year DATE yield that 0109 DATE . Again, if you look at the change in the markets and we'll get I think to the map shortly. It's very clear that the markets are expecting a lot of hawkish stance from the federal reserve maybe not to something that was priced in but certainly energy shares amongst the the only industry group today DATE making some pretty Finance ORG minister not That they could cut a production the UK GPE you can see the footsy down two CARDINAL tenths of eight% so mark it's a waiting clues on how It will be a central bankers gather this week DATE at Jackson Hall FAC . We spoke to Stanford University Economics ORG Professor John Taylor PERSON who's at the very first ORDINAL conference for that kids ago. Well, he says the fed ORG should be more communicative about where policy has to go. I say five% is what we should aim Let's let that and that is not high by historical standard that's Remember what it was in the 70s DATE . But it's it could be high. I would say I wouldn't say absolutely five CARDINAL . If inflation doesn't come down then it may have to be higher but I think a place will come down and we can stick it at a level like that but let's get there first ORDINAL . Now we're joined by Morgan De LaDonna ORG head of Vestal Stragy PERSON for Europe LOC at Global XEF Morgan thank you so much for joining us a lot of the focus is actually on equities but it's What are the forces that could push at some point dollar MONEY to stabilize someone? That's the markets are expecting more occasionist from But one CARDINAL thing that shoots tabilize the pair would be a more occasionist from the ECB as well because when you look at headline inflation in Europe LOC core inflation in Europe LOC they're Trading higher to it turning higher and that is likely to trigger some more occasions from the ECB and that should stabilize the the pair. So how hard can you expecting this to be to be despite some of these concerns of course about even a protracted and ugly downturn if energy prices go much higher? I think for the He'd be the key input to inform their decision in terms of the size of the hike we'll still be cool inflation in the near future because when you look Services inflation. It's training higher. So, I do think the ECB might go for another 50 CARDINAL baby spontaneous. And that that is something that is not currently priced in because the market is Focus on the downtown on the economic side but given the energy crisis in Europe LOC I do think that inflation will probably be more in focus at the ECB than actually the incoming data inflation definitely and focus everywhere because Cost of living crisis if there's enough support to fiscally from countries can we avoid the worst of a recession It's really hard to say I think at the moment there's taxation scenario is becoming that the most likely scenario in Europe LOC and that could come up.

It's really hard to say I think at the moment this taxation scenario is becoming that the most likely scenario in Europe LOC and that could come That could happen actually before the end of year DATE so stagnation is the the main risk physical side it can be contestatically cool but at this point in time given the inflammation Data is seems that it's pretty unlikely to have anything on top of what's already Agreed on. So we're gonna overall what are you most when you look at the markets? What do you think is most being mispriced? Well there's disconnect between Headline WORK_OF_ART is something interesting I'm looking at because when you look at the headline inflation there is a likely risk that the market is seeing the fed ORG to remain okay but headline in fishing may have already So yes the market may have priced these Dovish NORP Peter Early prematurely but made perhaps by not too much. We have a great chart actually looking at what we're seeing in terms of energy and the fact that some of the energy panic is really also hurting your upper Of putting some great charts together on the back of those flash PMI ORG is when you look at natural gas apparent coal like this kind of chart should traders you know to take action more than they have so far What is this charted definition shows the challenge from from the ECB a bit of a catch 22 CARDINAL where the ECB is trying to cap to cap inflation so far The the control over headline inflation has been complicated because it's what's mostly driven by So the ECB that that is the reason for the ECB to continue to to high interest rates despi Some some down toes but all of these rise in European NORP energy prices is is saying that yes the picket headline inflation may be quarters maybe For spring next year DATE . They're ahead of investment strategy for Europe LOC at global Staying PERSON with us. Now, coming up, the German NORP Chancellor, Olive Schulz PERSON , visits Canada GPE , has his government works to reduce Germany GPE 's dependence on Russian NORP gas imports. We have more of that story next and this is Bloomberg PERSON . This week DATE As the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the kansas city feds 2022 CARDINAL economic policies Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving coverage starts August 25 DATE on Bloomberg PERSON television and radio If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can beat that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this in Wyoming GPE we wanna make sure that people understand especially in Wyoming GPE but as United States GPE as a whole this trend is coming it's not going to stop. This is more of a small town that's growing into what I would call the

This trend is coming. It's not going to stop. More of a small town that's growing into what I would call the cryptocurrency version of Silicone Valley FAC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. I'm David Weston PERSON . We think that's the next secular shift. Yes, it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. I got Alex Finance PERSON politics. This is Bloomberg PERSON surveillance. Early edition and fronting like we're here in London GPE . Now, German NORP Unreal unreliable Russian NORP energy supplies for the chancellor all of Schultz went to Canada GPE as a part of a push to Alternative source of gas and he emphasize that his government is working hard to end its dependence on Russian NORP gas We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never Reception ORG infrastructure has been built in Germany GPE and that is short time Easing the processes because of the difficulty that that Germany GPE is facing to make sure that we can move through regulatory hurdles more quickly is something we're willing to do but there needs to be a business case it needs to make sense Sorry butchered your name cuz it's a Tuesday DATE in August DATE . I will get it right. I promise. I'm at we'll all alternatives do Russian NORP gas to Russian NORP gas. Actually, does Europe LOC have in the short term and longer term? While indeed in the short term Europeans NORP groups are quite scars because it has to get LNG ORG from the market available cargos that already been produced so it's up to the companies that they're able to supply this Monacos GPE to for example this allergy Canada GPE Canada GPE quite close to Europe LOC Is the few days DATE of shipping but the the deal cancels on west part so it's a very difficult to read the gospel was to to east and to the loss of projects to Bill PERSON and she passed counter for years DATE and none of them have moved Possible. We'll see if it's John's interest. We'll push them forward but Business case actually feel this energy Thought of It's not an easy task for you So Anna is there at any ceiling to prices? Well there's Los Angeles GPE as you see prices are now already more than 20 CARDINAL of over 10 times a higher than six CARDINAL now average for for the summertime and energy aspects that Pipeline ORG is going to be shut for 3 days DATE in from the 31st DATE of And the reason Will not come online

Pipeline ORG is going to be shut for 3 days DATE in the 31st of August DATE and the risk is market sponsor that the pipeline will not come online after the maintenance and the prices good at a good search higher is that happens now that the ceiling might come from demand destruction because at least high prices were Limited PERSON so see the remaining of of this very high prices on industry in particular a chemical industry and particular in Germany GPE as well And I thank you so much. I wanna try not to mispronounce anything. If I actually get it wrong, I wanna pay a mega watts LOC which will make you rich woman in like a week DATE . I know she ruska. Joining us on the very latest. For energy prices. Now, we're back with more Gandalidon ORG , head of investments strategy for Europe LOC global We're gonna we talked a little bit about of course the energy price. Again, it seems that when you look at equities and I guess the problem is the energy is that it's used for making everything. If you're if you're making for example glass in Germany GPE and the price goes up you may also be shut down. It is it are the markets realizing this What exactly is priced in? I think it's This pass through effect now in terms of equities and an activities we we do see that there is a slow down in a Now in Germany GPE that will lower the gas demand and maybe reduce some of the demand and therefore some of the pressure on the price down the line but there is still a risk in the short term because of They they capacity of of building reserve before winter DATE in in Germany GPE seems quite challenging despite lots of effort To try to see alternatives. So, in the short term, I think there is still some options LNG ORG we mentioned it before but also like nuclear. There is also Change that Germany GPE reassess is view on on Nuka PERSON power if there is a risk to the economy so nuclear and Europe LOC has been actually one of the the first ORDINAL option for for some other countries in the UK GPE France GPE and that that could be something for the shorter down the line so we're gonna talk to me Yeah down the line finish with that yeah down the line it's more looking at investment in clean energy as we knew it both and and hydrogen yeah we're gonna Zoom in for the UK GPE so we have this pretty incredible call by city saying inflation could 17% PERCENT . Really mean because it costs a living crisis due to this energy While in the UK GPE on top of having an energy crisis you also have a effect and the UK GPE imports a lot so that there's still maybe in terms of this taxation scenario it's even bigger in the UK GPE compared to continental Europe LOC that is for sure but in terms of Acting inflation. It's really hard to say because there are lots of moving parts on on the energy side and any will all depend on what is the solution in the near 10 CARDINAL . Do we like increase nuclear capacity or I will reducing demand. Alright we'll get thank Ahead of investment strategy for Europe LOC at global ex ETFs now coming up full coverage of the Jackson Whole Summit ORG will bring you top interviews and analysis of course it's all about the currency market so we'll look into that euro dollar yesterday DATE below parody currently at 90 CARDINAL I think about One where's next to this is Bloomberg PERSON .

China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth But it's come at a cost. China GPE is the world's largest greenhouse gas cemeter. There is no way to tackle climate change unless China GPE reduces its emissions to nine CARDINAL oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hamper industry All this has led the world's biggest polluter to take steps towards a radical transformation. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now we've learned from history on this learn from our experience is the That can communicate what's objective is it would like to get back two% ORG inflation it needs to do this by a Montreal GPE policy that reduces inflation does reduce the growth the economy just inflation better off will be so that communication that stipulated about what the policy will be like is very important right now and I hope that does John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what roller have financial conditions played and should the fed ORG be paying more attention to this or at least a loot to that fact in order to sort of bring down this bullishness that Well they have to pay attention to the the markets obviously what they're they have an impact on the markets and the markets have impact on them but I think that the more they are deliverative this is what needs to be done this is what's worked in the past this is how we can do it The the more convincing it will be I think that what the markets don't like is uncertainty about what's gonna happen to us more uncertainty today I think that's one of the reasons why the markets went down but the the more the default can indicate Needs to be gone. That's why these rules are so called Taylor PERSON or whatever you wanna call it or advantageous cuz it says, hey, we need to move a little bit further and hopefully, that will cure the problem a more rapidly than people expect. John when you wrote about this and not in 80 to you flagged the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a risk

You flagged the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a recession given perhaps from the policy errors before does that mean we're at a point where recession is going to be maybe a likely cure for this battle of inflation? I don't think Needs to be part of the cure what we we've experienced if we let in place and build up over time like it's in the 70s it was 7 years DATE of hiring. If we nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about their right to worry about cuz they've seen in the past but the more that there can be a stipulation, this is what we need to do. This is good Montreal. This will make the economy healthier. It should make us stronger growing economy as a That well recently we're not even faster and I think that's what we should emphasize. This is better for Josh PERSON . This is better for the economy. This is better. And also it would mention the world economy. We Each and all over the place right now. Well that was Stanford University Economics ORG Professor John Taylor PERSON now let's get straight to the Bloomberg PERSON first one is here's Leanne ORG 's hi Leanne PERSON hi friends saying Sonia Arabia's PERSON energy ministers has Opec and it's allies maybe forced to cut output as the future's market has become increasingly disconnected from fundamentals Prince Harmful volatility is disturbing the basic functions of the market Opec Plus meets next month DATE to consider production targets now British Airways ORG says it's scrapping about 5000 return flights in the coming months DATE that is after cancelling about 13% PERCENT Due to a staffage shortage and extended capacity curves at its London Heathrow ORG hub BA ORG says passengers who have been affected can rebook alternative flight or even seek refunds now Doctor Anthony Fauci PERSON who became a household name during the pandemic is to step down at the end of the year DATE the Us GPE infectious disease expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease outbreaks since the HIV crisis for 81 year old DATE says he's leading to pursue the next chapter of his career The US GPE has warned that Russia GPE 's preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE this comes after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dusterly crime Ukraine GPE is preparing to celebrate independence day tomorrow DATE which also marks Global PERSON news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries and Leanne Garrens PERSON this is Bloomberg PERSON of France GPE scene That's coming up next and this is Denver GPE .

Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . Estimate And the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Bloomberg Law PERSON At Jackson Hall FAC . Plus Opec on alert while crew games after Sadi Arabia GPE warns the Lions could cut production to support prices. Now we're just getting some UK GPE data shortly of course all of the talk is on that city group note yesterday DATE saying that in Hear the UK GPE if you assume that energy prices go much higher so the cost of living crisis is getting much worse inflation could hit some 17% a 17% PERCENT inflation given the back of For the moment. I mean, are we looking at six% GPE ? Are we looking at seven CARDINAL What does that mean for I mean, if you'll get mortgages and how much people, of course, are dependent on that we could see a real, a crisis in the UK GPE . Alright, we're just getting those figures out in the UK GPE , August DATE manufacturing, 46 DATE , forecast was for 51 So it's much much much worse than expected from manufacturing. Again, anything below 50 and we're at 46 DATE is a contraction. Now, August DATE services at PMI ORG falling to 52 CARDINAL . Five CARDINAL . That's a touch better than expected. The other story of course, weaker pound and you kind of just wonder what that endpoint Is that we earlier had some euro area PMIs. It declined that they declined for second month DATE according to new PMI ORG data just out. Now, they signal that fears of recession mail already becoming to pass as record inflation stops demanding weakness, sips into more and more sectors joining us now to break this down for us as Lizzy PERSON Bird and Lizzy PERSON . First ORDINAL of all, that UK Manufacturing ORG much worse than expected. Yes, and but you've still got growth in services and on the composite. In is the same as the euro zone looking ahead. They bloomberg PERSON economics reckon Going to get a recession later in the year you've already got consumer confidence

Economics reckon you're going to get a recession later in the year you've already got consumer confidence at the level that's consistent with a recession. Er and what I would also point out is just looking ahead. Er our economists reckon that the UK GPE 's recession Be milder than previous ones. Er because you've got healthy household balance sheets because we're expecting this fis Singulars from whoever is the next prime minister. But even you know let's try to saying that a recession isn't inevitable in the UK GPE . Our economy say that all she can do is cushion the blue cos it is coming. So the figures I I think will get worse later in the year DATE . Yeah I mean that city group note yesterday DATE It was like really terrifying reading. I mean, I sent to everyone at news saying like, oh my gosh, interest rates at six CARDINAL , seven%. It was like, wait, what does it mean for my mortgage? What's the So we've had a slew of data this morning TIME . Let me start with France GPE . It's slumped the lowest level since that destruction earlier in the pandemic. Er unexpectedly Germany GPE though has already has gone to contracted again but that was what we did Back because of it's comparative higher reliance on your Russian NORP natural gas. More broadly across the Euro ORG zone. There's contractions driven by manufacturing. But also you're seeing services like tourism grinding to a halt again because of the inflation impact. So a lot of data but it it heralds a Run into the end of the year DATE for your opinion economies unless surveyed by Bloomberg PERSON do expect a recession and again it's a headache The ECB cos they're expected to continue hiking rates even though the economic momentum is feeding. Yeah and it's all happening on currency. Thank you Lizzy PERSON Bird and there were the very latest on the UK GPE and European NORP economies. Now millions CARDINAL of ungodlands will vote this week DATE in the key election for the oil rich Faces WORK_OF_ART it's toughest test yet against a rejuvenate rejuven Opposition ORG . Central bank governor. Thank you governor for joining us in of course, Bloomberg PERSON surveillance today DATE . Now, if you look at what some of the, well, the region has a whole Particularly vulnerable to high food and energy prices. What can your Central Bank do to actually insulate Angola GPE ? Hi good morning and thank you so much for having us from Simpson PERSON to us Pleasure to be here but as far as inflation is concerned Angula PERSON as you know has been through very demanding program and how did the program here from outside Central Bank ORG we also come back in very restricted market policy to ensure that we have prices that are stable level and Around 27% PERCENT and today DATE is 21 DATE and we expect by the end of this year DATE to be below 18% PERCENT so the initiatives that I'm gonna have taken in the in recent past with all the Including the ones related with local traduction where we have seen us on an increase of food in the market. I think it's helping. So today I know that keeps on importing quite a lot. On a monthly DATE basis we are important something like 200 1 million Dollars MONEY of food. Years ago DATE , I mean your inflation target is 18% PERCENT for 2022 DATE How much you have to increase interest rates to make sure that you hit that target. You're okay cuz today we how are basic infrastructure ladies on 20% PERCENT and actually as inflation is falling we expect also interest rates to to follow the same trends so we are not under any sort of pressure to increase interest rates actually we're gonna do all the way around as the equation is falling we'll Offering more chances for a local production to keep on flourishing. So you're not expecting to to hike rights. I think your next posting meeting is September 26 DATE . September DATE yes and and we are not anticipating any increase on interest rates actually in the last monthly DATE meeting we made a decision to reduce Rates.

And we are not anticipating any increase on interest rates actually in the last Meeting we made a decision to reduce Rates and we expect that if things remain with the same trends and now we September DATE we may see again interest rates falling I know Angola ORG 's dead burden has been falling but I think it used to allow about 19 1 billion dollars to China GPE . There's now talk about to China GPE waivering some of their debt to certain countries. This is a goal or one CARDINAL of them. Well minister finances taking care of that when it comes to external that I think we can use about a goal as far from China GPE use that angle is diversifying it's sources of a finance and which is quite helpful but then it's the minutes you'll find it in our case is the one CARDINAL building where whether with a China GPE when To send about management not the central bank. Continue on the path to basically severe not several those ties but certainly diminish those ties with China GPE . Yeah I think that I angler has to be open and asked to keep on looking for opportunities but they initiative that a country has been done in the last few years DATE in some of the reforms that we're having to do it and the Central Bank of India ORG where under foreign exchange market for instance we remove all the Bottom X that we used to have in the country. So, today DATE , it is no longer require any sort of a licenses to import or expert funds into the country. So, it makes the markets more flexible, viable, and and again to us to have different an alternative ways to get finance. I think it helps. I have to say your currency is pretty incredible getting more than 20% PERCENT against the dollar this year DATE since early 2022 DATE which is one of the best performing currencies in the world where you continue to keep it free floating or will you try and saveguard some of your exchange reserves? No we will just let it be and the thing is that in the central bank we are concerned with reserves international resource management so we are our target is 10 months DATE cover of airports of goods and services we are Wrong 8 months of of coverage and so it's still below our target but we are not anticipating the need to intervene in the markets we just let the market function the way it is it's it's working just fine so today we go like we don't have people waiting for opportunities to make payments abroad Coming and seeking the central. Hey Facebook What's behind the strength of the Kwanzaa GPE ? I think of one is the monastery policy that we are conducting being respective. Cuz in the past few years DATE to have a very expensive monitor policy in Bangola GPE in all the public inefficiencies at the end of the day DATE and they need to additional finance. We're supported by the Central Bank ORG . Is no longer the case we have a far more respective more discipline actually once one or also has to be fair on the physical smile we can also see the efforts that authorities are making that but on our front far more discipline then you also and goal is an oil commander Help in the market Also increased and also one has to be recognized that all the initiatives to increase local production is also buying results so we are reporting glass which means that the currency has also taken a benefit of of those developments I'm gonna I know I wanna talk to you about banks and the banking sector. You have 25 CARDINAL banks in the country but I think five CARDINAL of them actually have the main market share. Are you expecting Eminem PERSON and consolidation in your country? Yes we do. Actually we have recently made a decision to include the mineral capital requirements in Angola GPE once again. It will come in force now in in October DATE . Yeah but also we are witnessing that are some of the banks is that need is not just the requirement for additional capital is that I know that as we form the finances And we have adopted most of our recommendations References so we both know

Adopted most of our recommendations that are followed by European NORP banks so that's this is one of the our preferences so with all of the with all those we forums is the market is becoming a full moon demanding for commercial banks in we are expecting a merges but also we have already I know I saw one CARDINAL right yep that's fine Biggest private lender who's next. The one to be listed this year DATE . It's happening. You were appointed Central Bank ORG Governor in 2017 DATE are you ready to go for another term? Well, yes. I'm I'm very happy with the work that we're doing here. We are satisfied with the results. But Keep on doing the job that we are doing the best we can possibly do Alright thank you so much for joining us Governor joining us for an extensive conversation ahead of the elections. Now, let's get straight to your Bloomberg GPE business flash. Here's the end gear. It's highly on. Hi, friends. Bloomberg PERSON has learned that Apple ORG plans to begin manufacturing the iPhone 14 CARDINAL in India GPE about 2 months DATE after the Seeking alternatives to China GPE as Administration ORG clashes with the US GPE government and imposes lockdowns across the country. Now Elon Musk PERSON has subpoenaed as long time friend for my Twitter PERSON CEO Jack Dorsey PERSON and his illegal battle with the social media giant muskers seeking to collect documents and To show that Twitter PRODUCT understated how much of its customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of that expected trial in October DATE forward is cutting 3000 CARDINAL jobs this week DATE to fund it shift towards electric vehicles the cuts will come Marily in the US GPE with some positions Eliminated in both Canada GPE and India GPE the CEO Jim Farley PERSON has repeatedly said the company has too many workers forward wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year by 2026 DATE and Zoom ORG shares filed in US GPE late trade after it projected sales and profit for Estimate annual DATE sales going to about $four MONEY . 4 billion CARDINAL down from its production in May DATE of as much as four CARDINAL . 55 billion CARDINAL seems pandemic boom has called considerably as officers reopen and competition intensifies from Microsof Teams ORG . Front and scene. Thanks so much. Leah, now coming up, Chinese NORP banks are said to be employing unusual practices to inflate their low volumes. We'll look at what's driving that next this is Booper GPE . When I started I had no idea it was gonna turn into this. Empire. I don't have any investors. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed.

That was homeless at one CARDINAL point Did ORG n't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do my machine what should be done by hand Economics finance politics this is Bloomberg PERSON surveillance early edition on London GPE now in China GPE some banks are inflating low numbers as they struggle to make government demands to pump more credit into the economy let's bring in our chief Asia econom NORP Corresponded Hong Kong GPE so and good morning to you exactly what is driving this. So the back story here Francine PERSON is that in China GPE 's economy right now there's no shortage of credit no shortage of cheap loans and a government is encouraging the banks to get money out there into real economy not a problem is as the economy slows down the Thai NORP for borrowing among households and businesses just isn't there. So what are colleagues picked up is that in the case of some banks at least what's going on is out there lending out some money, some companies, and then taking Money back in at the same rate in the form of a deposit so it's kind of a money go around and speak to the idea that he's banks who are being told to lend that money just can't find can't find those customers who are willing to borrow it because the appetite is spending the best isn't there against the Up of course of the big real estate slowdown and the ongoing restrictions from COVID oh. So it does it does speak to just have problematic Chinese NORP finding it to get policy traction in the economy and ensure that they actually get some momentum as we go deeper into the second half of this year DATE . So, I mean, this is not without risks. What are the main ones under Well, I think the problem continues to be francing at what point does the economy actually hit a bottom in China GPE ? The narrative had meant to be that July DATE and August DATE were supposed to see a turnaround, putting things on a better, even Last week DATE for the month of July DATE then of course we did Central Bank ORG cutting interest rates for the first ORDINAL time since January Bringing down mortgage lending rates but all of these steps speak to urgency among police makers but they don't speak to a turnaround in China GPE 's economy. I think that's what the big concerns right now from seeing that there is this liquidity shop that the The availability of credit, the issue is about why people aren't borrowing and that's why there's a call for or there's a sense that it will need to be deeper and bigger policy pivot. Maybe among on the real estate side or maybe on the call with oh side to really jump start and rev up activity amongst households and businesses in China GPE in the months ahead DATE . I mean could this just be caution and planning ahead so people are being very careful it could actually suggest a credit crunch. Well, look as old as a sense of caution in a slow economy Francine PERSON . You are right. China GPE has a very high household savings rate for example. So, it's not like there's AA liquidity or credit funds like that in China GPE . But at Same time the problem is that policy is struggling to get traction and every time the government unveils any measure it's kind of met with either another reversal on the covidier side of things we've seen ongoing eh recent lockdowns and restrictions of course on Hannah Island LOC which you know side kind of consumer confidence and of course in the real estate side despite Steps that they have taken and trying to bring in an interest rates and getting money into the system we continue to see a downward spot

Kind of consumer confidence and of course in the real estate side despite the steps that they have taken and chance of bringing an interest rates and getting money into the system we continue to see a downward spiral inactivity there so the point is None of the believers the government of polls so far have been enough to turn things around and that's what's worrying economists we saw those downgrades from Golden Sox ORG and the more last week DATE maybe sub three% growth now for the year DATE that's a fairly shocking rate considering what people are looking for to start of the year so I think Vacation is not a we will have to see a step up for the aggressive step up and policy over the coming months DATE if we are to see stabilization of growth that is expected ahead of the party congress ORG later this year DATE but the point is we haven't seen it so far the economy hasn't stabilized and that's what's A lot of observers watching this. And thanks so much as always for the wisdom and say to our chief of Asia LOC I can obviously respond in the current now coming up Jack Dorsey PERSON . We'll bring you the latest on the Twitter PRODUCT takeover battle. That's coming up next and this is Bloomberg PERSON . Do any kind of business in this country. There's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming GPE can be that venue for blockchain enterprise for crypto This trend is coming. It's not going to stop. Is more of a small town that's growing into without Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. So get to seven% in the coming months DATE . Where are the job cuts to come from? The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Economics find those politics. This is Edition of Francing WORK_OF_ART like we're here in London GPE . Peter PERSON and his defense against Twitter ORG 's lawsuit to make him complete his proposed 44 1 billion dollars MONEY buyout. Now, the Twitter PRODUCT co-founder has long been a friend of the world's richest man. Well, Dorsey PERSON stepped down as Twitter PRODUCT chief executive, last year DATE , and has since been an Get a booster of masks.

Co-founder has long been a friend of the world's richest man. Well, Dorsey PERSON stepped down as Twitter PRODUCT chief executive last year DATE and has since been an energetic booster of mosques FAC bid for the company. Now, he tweeted in April DATE that mask was a singular solution I trust Take over not for more. We're joined by Bloomberg ORG . Quick takes Alex Webb PERSON . Alex PERSON , first ORDINAL of all, are you still friends if you get subpoenaed by the other one? It's hard to see how. It seem pretty clear wanted or wants Elon to acquire Twitter PRODUCT . Elon doesn't want to acquire. Invention in the middle of that. Yeah but do we know that he still wanted to acquire it once Elon ORG pulled out like what role has he played? Unfortunately Darren PERSON is the elonch has far more on Twitter PRODUCT than does Jack Dorsey PERSON and Jack Dorsey PERSON was one CARDINAL of the co-founders so no we we don't know Jack Dorsey's PERSON thinking I've been treated to see what becomes public from this subpoena but from the session because we some fascinating conversations on the earth LOC . So do we have any insight into what Elon ORG mask is trying to find out with the subpoena? Whole case is built around this idea that Twitter PERSON overstated the number of accounts. There's also to say understated the number of accounts that were bought and presumably then he's trying to get data or admissions from Jack Dorsey PERSON that they knew that it was more than that. But I think ultimately the key thing here is Twitter PRODUCT when it declares how many accounts it has and what percentage of those accounts are bots it doesn't say the number of accounts total it says the monetizable daily DATE active users so by definition a bot is not monetizable so therefore it's probably excluding a bunch of bots already from that calculation and then perhaps it thinks it might have not manage Sauce out five% of those. Really that relevant about why he's not buying it. Well, not necessarily no because if you look at the and Made this case very compellingly that Twitter PERSON in their filings they say we think there's this number of bots we might be wrong if there's a better way of calculating it we'll be delighted to hear it therefore it isn't necessarily something that should be enough to sty me the deal or the Meaningful but you know Daily active users and monetizable daily DATE active users are not part of January DATE accepted accounting principles is something that Twitter PRODUCT kind of is a metric they've invested on their own and therefore how they can be wrong is hard to tell yeah what a story I mean Unless you're very bored. I mean the life of billionaires is very different perhaps. Billionaires is very different. Alex web there with a very latest on Elon Mask PERSON . Now, Bloomberg PERSON 's around. It's really audition continues in the next hour TIME . Let me learn headlines in New York GPE and Edwards ORG is here in London GPE . They'll have a full round of what to expect from Jackson Hall FAC That Jay Spall PERSON speech on Friday DATE then we look at Euro dollar I know there's quite a lot of talk of course about equities but if you look at where the big whip sign We'll look at that. Hey When the price of anything goes up the consequences reach far beyond what you'd expect but perhaps most of all when it comes to food. In 2010 DATE .

Of all when it comes to food In 2010 DATE surging food prices help spark the Arab Spring lives were lost regimes fell and the consequences are still with us. Once again food prices are rising and fast Energy cost broken supply chains and surging demand were just some of the factors that have driven food prices to their first ORDINAL record high since the Arab Spring EVENT . And that's all before a war between two CARDINAL of the world's biggest food producers. Ukraine GPE is called the bread basket of Europe LOC and taken with Russia GPE the two CARDINAL account for about a quarter CARDINAL of global we trade they produce more than half CARDINAL of the world's sunflower seeds and oil nearly 20% PERCENT of the barley Now, throw in rising energy prices and processing transporting even refrigerating food gets more expensive. Plus, fertilizer production is extremely energy intensive. Less fertilizer means lower prop field and prices rise even more. Pandemic revealed how complicated in fragile global trade systems are. Global agriculture perhaps even more so. Unlike metals for example, the food goes bad. Encrops take months DATE to grow near vulnerable to unpredictabilities like the weather. Food prices will be felt everywhere but the poorest countries in the world will be hit the hardest. And as all these factors compound, the real fear is that record high will lead to record high and ultimately to a global food crisis with vast consequence. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now And everyday English LANGUAGE in the command line. Compare financials Find people analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. In terms of what happens politically and what the economic fallout is. Right now Central Bank's ORG everywhere will take anything they can get it's almost like a sort of a hawkish sandwich around this this mirage of of disinflation that we see starting to dominate the narrative Playing a game where the market Hey Facebook they're not always rational and they're just sometimes need to be given the alarm bars. Matt Miller PERSON and Kaylee Lines PERSON . It's 10 AM TIME in London 5 AM GPE in New York GPE and 5 PM TIME in Hong Kong GPE our top stories today DATE the federal reserve ORG overshadows the markets European NORP stocks and US GPE equities waiver over worries about more money Economic activity falls for a second month in a row DATE record inflation is sapping demand and Donald Trump PERSON reportedly has more than 300 CARDINAL classified documents at his Florida GPE estate some of those documents are said to have come from the CIA ORG and the national security agents Plenty of stories to dissect then Kaylee plenty to get the details on with our team shortly but in terms of weather markets trade European NORP markets and US GPE features suggesting a little bit more optimism after the the devastation of yesterday DATE Asia LOC though that was a different It was indeed and of course, the day DATE in the US GPE and Europe LOC is still young. So, a lot could change over the coming hours TIME but in Asia LOC , as you will later to, it was decisively risk off. We had stocks lower across Japan GPE , China GPE , Hong Kong GPE , all together, taking the MSI Asia Pacific LOC Index down for Chinese NORP developers those property stocks which have gotten what should be some supportive news in the last couple of days DATE around more loans to the sector Trying to prop it up also couldn't get a bit those were down about seven CARDINAL .